ABSTRACT
This chapter begins with principles and describes a natural approach to dealing with risky situations. The informal principles are then developed into a structured generic risk process which can be widely applied in a variety of situations, including the management of risk on projects. While many of the disciplines of project management can be seen as an attempt to address some elements of risk in projects, it is clearly the specific role of risk management to allow both overall project risk and individual risks to be understood, assessed and managed. Since every project has a different level of risk exposure, it is necessary to scale the risk process to meet the risk challenge of each particular project. Having chosen separate response strategies for each individual risk, as well as identifying strategies to tackle the overall level of project risk exposure, the risk owner should then develop specific actions to put these strategies into practice, each with an agreed action owner.
