ABSTRACT
In Chapter 3 we briefly discussed why there is an element of risk in all types of project, usually reflected in the overrun of time and budget and the non-conformance of quality. And in the extreme case the results could also be a serious breach of environmental or safety standards. We also discussed three distinct and separate reasons for project risks as common characteristics, deliberate design and external environment. As there are more uncertainties in the outcome of R&D projects both the probability and impact of risk are much higher in R&D projects. The ‘goals and methods’ matrix of Turner and Cochrane (1993) in Figure 1.3 also clearly indicates more chances of failure in R&D projects. In pharmaceutical projects, in particular, rigid regulatory procedures have to be followed to ensure the safety and efficacy of the discovered molecule in preclinical and clinical tests before a drug can be approved for production. The long project life cycle comprises several stages, and the project may have to be abandoned in any of these stages, with typically a low probability of success. In addition to the commercial and market risks common to all projects, the constituent activities of R&D projects also carry the risk of technical failure. Thus R&D projects carry the risk of failing altogether.
