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Rethinking Project Risk Management

  • Asbjørn Rolstadås
  • Per Willy Hetland
  • George Farage Jergeas
  • Richard E. Westney
Chapter
Part of the Springer Series in Reliability Engineering book series (RELIABILITY)

Abstract

This chapter shows that there is a need to rethink project risk management. The current best practice for managing large projects focuses on major topics such as a phase-gated development process, governing documentation, team alignment, risk management, stakeholder management, and contract structure. The conventional thinking about project risk has led to much attention on the concept of front-end loading. The main philosophy behind this concept is to reduce the probability of cost and schedule deviations by fully defining the project before execution begins. A common approach for managing risk may contain four steps: identification of risk factors, risk analysis, risk action plan, and risk control. Management is about making decisions, and decisions introduce risk. The decision process and terms like uncertainty and risk are elaborated in this chapter.

Keywords

Corporate Management Project Risk Project Portfolio Project Organization Black Swan 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag London Limited 2011

Authors and Affiliations

  • Asbjørn Rolstadås
    • 1
  • Per Willy Hetland
    • 2
  • George Farage Jergeas
    • 3
  • Richard E. Westney
    • 4
  1. 1.Department of Production and Quality EngineeringNorwegian University of Science and TechnologyTrondheimNorway
  2. 2.BI Stavanger-facultyNorwegian School of ManagementStavangerNorway
  3. 3.Department of Civil EngineeringUniversity of CalgaryCalgaryCanada
  4. 4.Westney Consulting Group, Inc.HoustonUSA

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