ABSTRACT
Risk management lies at the heart of successful project delivery. In fact, project management is all about risk management and nothing else. Risk management includes all activities required to identify and control the risks relating to the preferred project option. This chapter describes a high level, what literature is available on the subject, both for public projects as for commercial and industrial projects. The right contingency for dealing with residual risk of certain events will depend on the level of probability that the risk will have a negative impact on the project objectives despite the mitigants designed, and the expected impact of such risk in that given case. Risks carry an element of uncertainty and of unforeseeability. Risk allocation has at least two angles to it: making sure the right mitigants are in place in terms of tasks and responsibilities; and arranging for the responsibility of dealing with residual risk.
