ABSTRACT
A major concern in recent years in managing projects has been the continuing problem of
dealing with risk and uncertainty. Such concerns are prompted by increasingly severe
financial and legal consequences of poor risk management. The continuing budget and
time overruns as well as the negative impact of poor project management on corporate
image are no longer tolerated by funders (sponsors) or shareholders. When examining
high-profile failed projects such as the Channel Tunnel, the British Library, the Heathrow
Tunnel collapse, the Channel Tunnel fire, and the Challenger project, it was evident that
although sophisticated quantitative risk analysis techniques were used, these still failed to
prevent colossal losses.
