ABSTRACT
In the real world, risk management is a complete discipline in its own right and some projects employ full-time risk managers who have a deep understanding of how to manage risk. The process for risk management is usually described as a cycle, with four components: identify, analyze, mitigate/implement response, and review and monitor. Management of risk, though, is not without cost. Even just thinking about and understanding the risks on one’s project takes time out of their day and therefore has a cost. But what is also clear is that it is prudent to set some cash aside to allow them to undertake activities that do not deliver the project, but de-risk it. By allowing a certain amount of risk to be included in one’s budget, they can pay for things that help them keep their project on track, or even deliver sooner.
