ABSTRACT

The principles of effective risk management start with applying Continuous Risk Management providing the needed discipline to produce risk-informed actionable information by continuously managing risks produced by reducible and irreducible uncertainty. The data and processes needed to increase the probability of project success for each item related to each other. The connections between the data and the process is representative of the typical project over its lifecycle. These connections and data are the basis of the Business Rhythm. The Design Structure Matrix (DSM) method was introduced by Stewart for task-based system modeling and initially used for planning issues. A DSM is a square matrix, with labels on rows and columns corresponding to the number of elements in the system. DSM can be used to model the risk structure between each element and across the project. There are three types of risk interactions between pairs of risk in the DSM: dependent risks, interdependent risks, and independent risks.