ABSTRACT
Freak events have been known to disrupt projects, such as the unexpected discovery of important archaeological remains, or the decision by a few members of a rare protected species to establish their family home on what should be the site of a new project. Failure mode and effect analysis has also been imported into project risk management from reliability and quality engineering, but the method is more helpful because it starts by considering possible risk items, and then proceeds to predict all their possible effects. Suppose, for instance, that a project is being planned to move a large company headquarters from a central city location to a country town. Sensitivity analysis is particularly useful in considering the effects of risks arising through incorrect forecasting of parameter values during project financial appraisal. The project or site manager must check that inspection certificates required by the regulations are current and valid for plant hired for use on a construction site.
