About the Authors xvii Preface to the Second Edition xviii Preface to the First Edition xix Acknowledgments xxi Glossary of Terms xxii 1 Introduction 1 1.1 Introduction 1 1.2 The Project Perspective 1 1.3 The Project Stakeholder Perspective 2 1.4 Overview of Contents 3 1.5 Limitations Caveat 5 2 An Overview of Risk 7 2.1 Chapter Introduction 7 2.2 Risk Definitions 7 2.

3 Threat and Opportunity 9 2.4 Risk and Uncertainty 11 2.4.1 Uncertainties in the Type of Risk Trigger Events 14 2.4.2 Uncertainties in the Occurrence of Risk Events 14 2.4.3 Uncertainties in the Period of Exposure to Risk Events 14 2.

4.4 Uncertainty in the Type of Consequences of Risk Events 15 2.4.5 Uncertainty in the Magnitude of Risk Consequences 15 2.4.6 Uncertainty in Periods of Exposure to Risk Consequences 16 2.5 The Dynamic Nature of Risk 17 2.6 Psychology and Perceptions of Risk 17 2.

7 Risk Awareness 18 2.8 Classifying Risk 19 2.8.1 A Generic Source Event Risk Classification System 20 2.8.2 Natural Systems Risks 21 2.8.3 Human Risks 22 2.

8.4 Risk Classification Based on Organisational Structure 25 2.8.5 Risk Classification Based on Project Phases 26 2.8.6 Customised Hybrid Approaches to Risk Classification 26 2.8.7 Multisystem Risk Classification 28 2.

9 Risk Communication 28 2.10 Chapter Summary 29 References 30 3 Projects and Project Stakeholders 31 3.1 Introduction 31 3.2 The Nature of Projects 31 3.3 Project Objectives 32 3.3.1 Procurement Objectives 33 3.3.

2 Operational Objectives 35 3.3.3 Strategic Objectives 36 3.4 Project Phases 39 3.5 Composition of Projects 41 3.6 Processes of Project Implementation 43 3.6.1 IT Project Example 44 3.

6.2 Ideation and Concept Development 44 3.6.3 Project Development Stage 45 3.6.4 Project Deployment and Operation 46 3.6.5 Operational Maintenance 46 3.

7 Organisational Structures for Projects 46 3.8 Project Stakeholder Relationships 47 3.9 Stakeholder Organisational Structures 55 3.9.1 Simple Structures 55 3.9.2 Machine Bureaucracies 55 3.9.

3 Professional Bureaucracies 57 3.9.4 Divisionalised Forms 59 3.9.5 Adhocracies 60 3.10 Modes of Organisational Management 61 3.11 Project Stakeholder Decision-Making 62 3.12 ''Risky'' Projects 66 3.

13 Chapter Summary 68 References 68 4 Project Risk Management Systems and Frameworks 69 4.1 Chapter Introduction 69 4.2 Risk Management 70 4.3 Risk Management Systems 72 4.4 Risk Management Standards and Guides 73 4.5 A Cycle of Systematic Project Risk Management 75 4.5.1 A: Establish the Context 77 4.

5.2 B 1 : Identify Risks 77 4.5.3 B 2 : Analyse Risks 78 4.5.4 B 3 : Evaluate Risks 78 4.5.5 C: Respond to Risks 78 4.

5.6 D: Monitor and Control Risks 79 4.5.7 E: Capture Project Risk Knowledge 79 4.6 Project Stages and Risk Management Workshops 80 4.6.1 Construction Project Example 80 4.6.

2 The DB Design-Bid Stage 82 4.6.3 The DB Build Stage 83 4.6.4 IT Project Example 84 4.7 A Project Risk Register Template 86 4.8 RMS Integration 89 4.9 RM Governance and Responsibility 89 4.

10 Joint Venture RMS 89 4.11 Project Client RM Requirements 90 4.12 Chapter Summary 90 References 91 5 Project Risk Contexts and Drivers 93 5.1 Chapter Introduction 93 5.2 The Contextualising Process 94 5.3 Internal Contexts as Risk Drivers 95 5.4 External Contexts as Risk Drivers 97 5.4.

1 Physical Contexts 99 5.4.2 Technical Contexts 100 5.4.3 Economic Contexts 100 5.4.4 Social Contexts 101 5.5 Using Contextual Information 102 5.

6 Chapter Summary 104 Reference 104 6 Approach to Project Risk Identification 105 6.1 Chapter Introduction 105 6.2 Approach to Risk Identification 106 6.3 Workshop Timing 107 6.4 Types of Risk Identification Techniques 112 6.4.1 Activity-Related Techniques 114 6.4.

2 Analytical Techniques 114 6.4.3 Associated Representative Techniques 115 6.4.4 Functional Value-Related Technique 116 6.4.5 Matrix Combinations 117 6.4.

6 Simulation or Visualisation Techniques 117 6.4.7 Speculation Techniques 117 6.4.8 Structural or Management Techniques 118 6.5 Chapter Summary 119 Reference 119 7 Project Risk Identification Tools 121 7.1 Chapter Introduction 121 7.2 Activity-Related Tools 122 7.

2.1 Work Breakdown Structures 122 7.2.2 Bar Charts 126 7.2.3 Critical Path Networks 127 7.3 Analytical Tools 130 7.3.

1 Decision Tree Analysis 131 7.3.2 Event Tree Analysis 133 7.3.3 Fault Tree Analysis 134 7.3.4 Failure Modes and Effects Criticality Analysis 135 7.3.

5 Hazard and Operability Studies (HAZOPS) 136 7.3.6 Safety Hazard Analysis (SHA) 138 7.4 Associated Representative Tools 141 7.4.1 Contextualisation 141 7.4.2 Checklists 142 7.

4.3 Financially Related Tools 144 7.4.4 Procedural Manuals Tools 144 7.4.5 Design/Cost Related 148 7.4.6 Risk Related 150 7.

5 Matrix Combinations Tools 152 7.6 Simulation or Visualisation Tools 155 7.7 Speculation Tools 157 7.7.1 Scenario Testing 157 7.7.2 Stress Testing 158 7.8 Structural or Management Tools 159 7.

9 Risk Identification Statements 159 7.10 Chapter Summary 162 References 163 8 Project Risk Analysis and Evaluation 165 8.1 Chapter Introduction 165 8.2 Qualitative Analysis 167 8.3 Assessing Likelihood 168 8.4 Assessing Impacts 171 8.5 Evaluating Risk Severity 172 8.6 Quantitative Analysis 175 8.

7 Risk Mapping 183 8.8 Chapter Summary 184 Reference 186 9 Risk Response and Treatment Options 187 9.1 Chapter Introduction 187 9.2 Risk Attitudes and Appetites 188 9.3 Existing Risk Controls 191 9.4 Risk Response Options 192 9.4.1 Risk Avoidance 192 9.

4.2 Risk Transfer 194 9.4.3 Risk Reduction and Retention 196 9.4.4 Risk Retention 197 9.4.5 Combination Responses to Risk 197 9.

5 Risk Treatment Options 198 9.6 Risk Mitigation Principles 200 9.7 Strategic use of ALARP 201 9.8 Re-assessment 202 9.9 Recording Decisions 202 9.10 Chapter Summary 203 References 203 10 Risk Monitoring and Control 205 10.1 Chapter Introduction 205 10.2 Assigning Responsibility 206 10.

3 Monitoring Procedures 209 10.3.1 Negligible Risks 210 10.3.2 Low Risks 210 10.3.3 Medium Risks 210 10.3.

4 High Risks 210 10.3.5 Extreme Risks 211 10.4 Control Measures 211 10.4.1 Negligible Risks 212 10.4.2 Low Risks 212 10.

4.3 Medium Risks 212 10.4.4 High Risks 212 10.4.5 Extreme Risks 212 10.5 Reporting Processes 214 10.6 Dealing with New Risks 215 10.

7 Disaster Planning and Recovery 215 10.8 Capturing Project Risk Knowledge 216 10.9 Chapter Summary 217 11 Project Risk Knowledge Management 219 11.1 Chapter Introduction 219 11.2 Knowledge Definitions and Types 221 11.2.1 Knowledge Transformation 221 11.2.

2 Types and Forms of Knowledge 223 11.2.3 Organisational Culture and Knowledge Management 223 11.3 The Knowledge Creation Cycle 224 11.3.1 Stage 1 (Tacit to Tacit): Use and Validate 225 11.3.2 Stage 2 (Tacit to Explicit): Identify and Capture 225 11.

3.3 Stage 3 (Explicit to Explicit): Codify and Store 225 11.3.4 Stage 4 (Explicit to Tacit): Share and Update 226 11.3.5 Using and Validating Knowledge 226 11.3.6 Identifying and Capturing Knowledge 227 11.

3.7 Codifying and Storing Knowledge 228 11.3.8 Sharing and Updating Knowledge 229 11.4 Additional Issues of Organisational Culture 230 11.4.1 KMS Alignment and Information Redundancy 231 11.4.

2 Tools and Techniques for Eliciting Risk Knowledge 231 11.4.3 Brainstorming Sessions 233 11.4.4 Storytelling 233 11.4.5 Communities of Practice 233 11.4.

6 Networking 234 11.4.7 Project Reviews, Project Debriefings and ''Lessons Learned'' 234 11.4.8 Mentoring and Apprenticeships 235 11.4.9 Induction and Training Courses 235 11.4.

10 Workplace Design 235 11.4.11 People Finders 235 11.4.12 Intranets and IT Platforms 235 11.4.13 Internet Search Engines and Alerting Services 236 11.4.

14 Organisational Culture 236 11.4.15 PRMS-Related Tools 236 11.4.16 Developing Organisational Risk Wisdom 237 11.5 Project and ORR Architecture 237 11.5.1 Capturing Project Risk Experiences 238 11.

5.2 PRRs 239 11.5.3 Beyond the Project Level is the ORR 240 11.6 Challenges for Implementing RKMSs 242 11.6.1 Issues Relating to Knowledge Itself 242 11.6.

2 Storing, Accessing and Using Knowledge 242 11.6.3 Knowledge System Development and Implementation Costs 243 11.6.4 Concern with Financial Issues and Return on Investment 244 11.6.5 Concern with Time Management and ''Unproductive Tasks'' 244 11.7 Communication and Risk Knowledge Management 246 11.

8 Ai 247 11.9 Chapter Summary 249 References 249<.