Project Risk Management Guidelines : Managing Risk in Large Projects and Complex Procurements : 9780470022818

This book describes the philosophy, principles, practices and techniques for managing risk
in projects and procurements, with a particular focus on complex or large-scale project
activities. The approaches contained here may also be applied to simple purchases of goods
and services, although with considerable simplification.

Managing risk in projects is important to:
• managers, because it improves the basis for making decisions to meet operational
requirements and achieve project and programme objectives;
• project staff, because it helps to identify things that can go wrong in the project process
and offers ways to address them effectively;
• end users, because it contributes to satisfying needs and achieving value for money in
acquiring major assets and capabilities;
• suppliers and contractors, because a sensible approach to risk in projects leads to better
planning and better outcomes for sellers as well as buyers;
• financiers, who must ensure they obtain a financial reward commensurate with the risks
involved; and
• insurers, who require comfort that risks are being managed prudently within the project
prior to determining whether and how much to charge for financing residual risks.