ABSTRACT
This chapter examines the concept of project risk, with careful attention paid to the mitigation of risks. It also examines the different varieties of risks learn how to apply probability to each risk, understand the impact of each risk, and ultimately learn how to devise a contingency plan for each risk. The propensity of project risk depends on the project's life cycle, which includes five phases: initiating, planning, executing, controlling, and closing. Technical performance risk analysis can provide important insights into technology-driven cost and schedule growth for projects that incorporate new and unproven technology. Sensitivity analysis is a primary modeling tool that can be used to assist in valuing individual risks, which is extremely valuable in risk management and risk allocation support. Monte Carlo analysis histogram information is useful for understanding the mean and standard deviation of analysis results. The cumulative chart is useful for determining project budgets and contingency values at specific levels of certainty or confidence.
