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Managing Project Risks

Peter J. Edwards, Paulo Vaz Serra, Michael Edwards

ISBN: 978-1-119-48973-3 August 2019 Wiley-Blackwell 464 Pages


A comprehensive overview of project risk management, providing guidance on implementing and improving project risk management systems in organizations

This book provides a comprehensive overview of project risk management. Besides offering an easy-to-follow, yet systematic approach to project risk management, it also introduces topics which have an important bearing on how risks are managed but which are generally not found in other books, including risk knowledge management, cultural risk-shaping, project complexity, political risks, and strategic risk management. Many new concepts about risk management are introduced. Diagrams and tables, together with project examples and case studies, illustrate the authors’ precepts and ideas.

Each chapter in Managing Project Risks begins with an introduction to its topic and ends with a summary. The book starts by providing an understanding and overview of risk and continues with coverage of projects and project stakeholders. Ensuing chapters look at project risk management processes, contexts and risk drivers, identification, assessment and evaluation, response and treatment options, and risk monitoring and control. One chapter focuses entirely on risk knowledge management. Others explore the cultural shaping of risk, political risk in projects, computer applications, and more. The book finishes by examining the current state and potential future of project risk management.

In essence, this book: 

  • Effectively communicates a conceptual and philosophical understanding of risk
  • Establishes the nature of projects and the stakeholders involved in them
  • Presents a systematic and logically progressive approach to the processes of project risk management
  • Demonstrates how to recognize the drivers of project risks and the factors which shape them
  • Emphasizes the importance of capturing and exploiting project risk knowledge
  • Provides guidance about implementing and building (or improving) project risk management systems in organizations

Managing Project Risks will benefit practitioners and students of project management across a wide range of industries and professions. 



Glossary of Terms

Chapter 1 Introduction

1.1 Chapter introduction

1.2 The project perspective

1.3 The project stakeholder perspective

1.4 Overview of contents

1.5 Limitations caveat

Chapter 2 An Overview of Risk

2.1 Chapter introduction

2.2 Risk definitions

2.3 Threat and Opportunity

2.4 Risk and uncertainty

2.5 The dynamic nature of risk

2.6 Psychology and perceptions of risk

2.7 Risk awareness

2.8 Classifying risk

2.9 Risk communication

2.10 Chapter summary

Chapter References

Chapter 3 Projects and Project Stakeholders

3.1 Chapter introduction

3.2 The nature of projects

3.3 Project objectives

3.4 Project phases

3.5 The composition of projects

3.6 Processes of project implementation

3.7 Organisational structures for projects

3.8 Project stakeholder relationships

3.9 Stakeholder organisational structures

3.10 Modes of organisational management

3.11 Project stakeholder decision-making

3.12 “Risky” projects

3.13 Chapter summary

Chapter References

Chapter 4 Project Risk Management Systems

4.1 Chapter introduction

4.2 Risk management

4.3 Risk management systems

4.4 Risk management standards and guides

4.5 A cycle of systematic project risk management

4.6 Project stages and risk management workshops

4.7 A Project Risk Register template

4.8 Chapter Summary

Chapter References

Chapter 5 Project Risk Contexts and Drivers

5.1 Chapter introduction

5.2 The contextualising process

5.3 Internal contexts as risk drivers

5.4 External contexts as risk drivers

5.5 Using contextual information

5.6 Chapter summary

Chapter References

Chapter 6 Approaches to Risk Identification

6.1 Chapter introduction

6.2 Approach to risk identification

6.3 Workshop timing

6.4 Types of risk identification techniques

6.5 Chapter summary

Chapter References

Chapter 7 Project Risk Identification Tools

7.1 Chapter introduction

7.2 Activity-related tools

7.3 Analytical tools

7.4 Associated representative tools

7.5 Matrix tools

7.6 Simulation-visualisation tools

7.7 Speculation tools

7.8 Structural-management tools

7.9 Risk identification statements

7.10 Chapter summary

Chapter references

Chapter 8 Project Risk Analysis and Evaluation

8.1 Chapter introduction

8.2 Qualitative analysis

8.3 Assessing likelihood

8.4 Assessing impacts

8.5 Evaluating risk severity

8.6 Quantitative analysis

8.7 Risk mapping

8.8 Chapter summary

Chapter references

Chapter 9 Risk Response and Treatment Options

9.1 Chapter introduction

9.2 Risk attitudes and appetites

9.3 Existing risk controls

9.4 Risk response options

9.5 Risk treatment options

9.6 Risk mitigation principles

9.7 Strategic use of ALARP

9.8 Re-assessment

9.9 Recording decisions

9.10 Chapter summary

Chapter references

Chapter 10 Risk Monitoring and Control

10.1 Chapter introduction

10.2 Assigning responsibility

10.3 Monitoring procedures

10.4 Control measures

10.5 Reporting processes

10.6 Dealing with new risks

10.7 Disaster planning and recovery

10.8 Capturing project risk knowledge

10.9 Chapter summary

Chapter references

Chapter 11 Project Risk Knowledge Management

11.1 Chapter introduction

11.2 Knowledge definitions and types

11.3 The knowledge creation cycle

11.4 Project and Organisational Risk Register architecture

11.5 Challenges for implementing risk knowledge management systems

11.6 Communication and knowledge management

11.7 Chapter summary

Chapter references

Chapter 12 Cultural Shaping of Risk

12.1 Chapter introduction

12.2 Culture in society

12.3 Organisational cultures

12.4 External cultures as project risk-shapers

12.5 Organisational cultures of other project stakeholders

12.6 Applying cultural shaping in project risk management

12.7 Chapter summary

Chapter references

Chapter 13 Project Complexity and Risk

13.1 Chapter introduction

13.2 The concept of complexity

13.3 Relative complexity

13.4 Uncertainty and project complexity

13.5 Identifying and mapping complexity

13.6 Influence of complexity on risk management

13.7 Complexity and mega-projects.

13.8 Chapter summary

Chapter references

Chapter 14 Political Risk

14.1 Chapter introduction

14.2 Political spheres

14.3 Dimensions of political risk factors

14.4 Examples of political risks

14.5 Political stakeholders

14.6 Managing political risks

14.7 More extreme political threat risks

14.8 Chapter summary

Chapter references

Chapter 15 Opportunity Risk Management

15.1 Chapter introduction

15.2 Concept of opportunity risk

15.3 Opportunity risk in projects

15.4 Examples of opportunity risks

15.5 Managing opportunity risks

15.6 Chapter summary

Chapter 16 Strategic Risk Management

16.1 Chapter introduction

16.2 Strategic issues for project risk management

16.3 PRMS process strategies

16.4 Chapter summary

Chapter 17 Planning, Building and Maturing Project Risk Management Systems

17.1 Chapter introduction

17.2 PRMS objectives

17.3 Planning and designing the PRMS

17.4 Risk management maturity

17.5 Building the PRMS

17.6 PRMS performance review and improvement cycle

17.7 Chapter summary

Chapter references

Chapter 18 Computer Applications

18.1 Chapter introduction

18.2 PRMS software applications

18.3 Other information technologies and tools

18.4 Chapter summary

Chapter 19 Communicating Risk

19.1 Chapter introduction

19.2 Communication theories and models

19.3 Components in the communication process

19.4 Communicating risk in the PRMS cycle

19.5 Communicating risk beyond the project stakeholder organisation

19.6 Evaluating risk communication

19.7 Chapter summary

Chapter references

Chapter 20 Conclusions

20.1 Chapter introduction

20.2 Current state of project risk management

20.3 Future project risk management

20.4 Checking your reading satisfaction

20.5 Closing remarks

Appendices Case Studies

Case A: PPP Correctional facility

Case B: Rail improvement project

Case C1: Project consultancy

Case D: Train mock-up project

Case E: Hot-rod car project

Case F: Aquatic theme park project