ABSTRACT
All projects involve casting the mind forward into the future and devising ways to bring about an end result that people require. The concept of managing risks implies the ability to control what risks arise and to decide on which risks are acceptable and which risks can be rejected. It would be nice to think that this could be done but in the real world of industrial projects this may not be possible. Risks stem directly from our inability to accurately perceive how the future will turn out. This might sound like a serious problem and that life would be much better if we could have perfect knowledge of what was going to happen, but that is not the case. Risks in projects stem from every aspect, some of which will be much more easily handled than others. The more of these issues that can be considered as factors in the performance of the project the more risky it is.
