ABSTRACT
Project-based organizations in both business and government are developing a strong interest in the management of risk. There are several reasons for this new-found interest:
The consequences of failure can be catastrophic in today’s brutally competitive world, so organizations are seeking ways to avoid failure and to mitigate its effects when it occurs
Classical risk assessment methodologies, such as Monte Carlo simulation, are now within the reach of non-specialists through user-friendly, PC-based software (e.g., Palisade Software’s @Risk)
People in organizations are gradually developing insights into risk management methodologies and philosophies as education and training have grown in this area
In 1987, the Project Management Institute declared risk management to be one of the core elements of the Project Management Body of Knowledge (PMBOK) — one consequence is that anyone who wants to pass PMI’s project management certification examination must develop basic risk management competencies
