ABSTRACT
Project risk appraisal should begin before the organization makes its decision about whether to undertake a project or if faced with several options, which alternative to choose. This chapter presents the scene for pre-decision project risk assessment, when there is more uncertainty than measurable risk. Timing is important, so the first section of the chapter deals with the project appraisal process, identifying stages in a project's development prior to the decision to commit to the project. For any type of project the potential involvement of multiple managers in the process brings decision-making behaviour and psychology in particular, into consideration. Whilst there was no particular focus on strategic investment decisions or project risk assessment, there were interesting findings on managers' attitudes to risk. The approach to project risk management taken in the project management literature, 2008 is a six-phase risk management process, from planning and identification through qualitative and quantitative risk analysis to risk response planning, and monitoring and control.
