ABSTRACT
This chapter indicates the complexity of the project risk concept. Humans in turn rely on information about the future which can range from complete, creating certainty, to incomplete, creating uncertainty. Perceptions are influences by a range of factors including how the person judges the risk/rewards equation, and vary between being issue-driven, adopting a customer view or seeking risk efficiency. The issues associated with each project risk event or condition need to be understood so that risk triggers are recognised and probabilities and consequences are determined. The author in a survey of members of the Australian Institute of Project Managers (AIPM) found that understanding the risk concept' was the greatest concern to participants among the project risk management issues. The recent global financial crisis is a good illustration of the impact of risk on these issues. Finally, the organisation has to determine and publish its project risks appetite and tolerance levels to provide guidance to risk behaviour.
