ABSTRACT
Chapter 12 points out that, in the systems approach to project management, risk management is an inherent part of project management and systems engineering, and is integrated into management and engineering instead of being a separate parallel activity. The chapter defines the nature of a risk and then discusses risk management, risks and uncertainty, ways of assessing, estimating, and measuring uncertainty and risks and opportunities. The chapter discusses the traditional approach to risk management and some myths in the traditional approach to risk management and shows how the systems approach overcomes some of the defects and flaws in traditional risk management. After a discussion on risk-based analysis, the chapter concludes with a discussion on risk mitigation and prevention, showing how prevention can be included in the project planning process.
