ABSTRACT
Introduction to risk This chapter will offer a high-level overview of project risk concepts, saving the more detailed mechanics for Chapter 22. In today’s fast-moving global marketplace, risk management is critical to business assets, jobs of employees, and ultimately an organization’s survival (Liebig and Hastings 2009). Why is this so critical? Done properly, risk management provides a way to reduce project outcome uncertainty through providing awareness of risks that are present, thereby minimizing future threats, seizing opportunities, and achieving optimum results. It also identifies the degree to which a risk may occur and the outcome it could have in terms of impacting the project’s success. Risk planning begins with a series of steps designed to help approach, plan, and execute the risk management activities, which constitute the first major step in risk management and is the first objective of this chapter. The second process step involves identification of risks through looking at a company’s historical records to identify all previous risks encountered on past related projects, which is the second objective for this chapter. Risks are then further identified by various techniques designed to identify risks that have never been documented previously. This chapter and the supporting Chapter 22 serve a support goal and will provide tools and techniques for the PM to utilize in this endeavor.
