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Summary
Summary
Risk is a key issue for every project manager. How the various risks are handled can often define the final outcome of a project; it can determine its overall worth to both sponsors and contractors and its ultimate success or failure. Alan Webb's The Project Manager's Guide to Handling Risk is a concise, practical guide to the process for every project manager. Starting from an explanation of how our current ideas of risk have evolved, the author: � introduces the nature of risk and the basis of risk analysis; � explores how and where different patterns of risk emerge within the life of a project, and � explains the variety of tools and techniques for risk analysis and management and shows how to use them. The book also provides a comprehensive assessment of the current range of software tools that deals with the various aspects of risk management. Included with The Project Manager's Guide to Handling Risk is a free CD-ROM containing samples of available software packages.
Author Notes
Alan Webb is author of Project Management for Successful Product Innovation and Using Earned Value, both published by Gower. Alan was a senior project manager and is now an author and an independent project management consultant
Excerpts
Excerpts
Risk is a key issue for every project manager. How the various risks are handled can often define the final outcome of a project; it can determine its overall worth to both sponsors and contractors and its ultimate success or failure. Alan Webb's The Project Manager's Guide to Handling Risk is a concise, practical guide to the process for every project manager. Starting from an explanation of how our current ideas of risk have evolved, the author: • introduces the nature of risk and the basis of risk analysis; • explores how and where different patterns of risk emerge within the life of a project, and • explains the variety of tools and techniques for risk analysis and management and shows how to use them. The book also provides a comprehensive assessment of the current range of software tools that deals with the various aspects of risk management. Included with The Project Manager's Guide to Handling Risk is a free CD-ROM containing samples of available software packages. Excerpted from The Project Manager's Guide to Handling Risk (Ebk) by Alan Webb All rights reserved by the original copyright owners. Excerpts are provided for display purposes only and may not be reproduced, reprinted or distributed without the written permission of the publisher.Table of Contents
List of Examples | p. vii |
List of Figures | p. viii |
List of Tables | p. x |
Foreword | p. xi |
Preface | p. xii |
1. Introduction | p. 1 |
2. Origins and History | p. 5 |
In the lap of the gods | p. 5 |
The measure of chance | p. 6 |
Social statistics | p. 7 |
Inferring the future | p. 9 |
Understanding reality | p. 11 |
Modern times | p. 13 |
3. Understanding the Nature of Risk | p. 17 |
Objective measurement? | p. 18 |
The risk paradox | p. 19 |
Are risks desirable? | p. 20 |
Perceptions and emphases | p. 21 |
Uncertainty | p. 22 |
Hazards | p. 23 |
Opportunity, possibility, probability, likelihood, chance and fate | p. 24 |
Project risk management | p. 25 |
4. Risks in Projects | p. 27 |
How do risks arise? | p. 27 |
What sort of risks are there? | p. 28 |
5. Project Selection | p. 34 |
Wealth creation | p. 34 |
Business merit | p. 39 |
6. Making Decisions in Uncertain Situations | p. 48 |
The concept of strategy | p. 48 |
Alternative strategies | p. 49 |
Expected values | p. 53 |
Decision trees | p. 55 |
Making use of further information | p. 61 |
The influence diagram | p. 65 |
Sensitivity analysis | p. 67 |
The decision-making process | p. 69 |
7. Changing Conditions | p. 71 |
Combined probabilities | p. 71 |
Conditional uncertainty | p. 72 |
Simulations | p. 75 |
Analysing the problem | p. 77 |
The matter of feedback | p. 84 |
Adding contingency | p. 85 |
8. The Risk Management Process | p. 89 |
Risk identification | p. 90 |
Analysis and assessment | p. 93 |
Choosing what to do | p. 97 |
Monitoring the situation | p. 100 |
Closing the loop | p. 101 |
9. Organizational Issues | p. 103 |
Attitudes and culture | p. 103 |
Project contract structure | p. 108 |
Contractual organizations | p. 113 |
Managerial organization | p. 119 |
Management structure for risk handling | p. 121 |
10. Managing with Risk Analysis Methods | p. 124 |
Impact and probability | p. 124 |
Robust projects | p. 127 |
Business risk | p. 132 |
Risk analysis and management within the organization | p. 133 |
Problem issues | p. 138 |
11. Software for Risk Analysis and Management | p. 140 |
Categories of software | p. 141 |
Software products currently available | p. 142 |
Risk status monitors | p. 145 |
Combined approaches | p. 160 |
Overall conclusion | p. 162 |
Appendix I Terms used in the discussion and description of risk analysis and management | p. 163 |
Appendix II Software products and vendors | p. 169 |
Appendix III Software products on the CD-ROM | p. 172 |
Index | p. 175 |