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Summary Chapter 18 'managing risk' Gower Handbook of Project Management, ISBN: 9781472422965
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Chapter 18 Gower Handbook of Project Management, ISBN: 2965
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Summary of the hand of project management | Remco van der SchootMultitasking Doesn’t support multitasking Allows multitasking (two activities can be
completed in the same time)
Delays Delays are on non-essential tasks Member can immediately start on such
activities
Real-time Uses real-time monitoring and buffer for The duration for certain task may lengthen
activities each activity to ensure on-time completion when an activity needs extra time
applicability When there are unlimited resources and a When there are limited resources and a fixed
flexible deliverable deliverable
Additional sources: Critical Chain vs Critical Path (CCPM vs CPM) | Wrike Guide, Critical Path Method vs
Critical Chain Method for PMP Exam - Updated PMP, PMI-ACP & ITIL Exam Tips 2022 (edward-designer.com)
& 5 Advantages of Critical Chain vs Critical Path (pm-training.net)
2.5. HOOFDSTUK 18 – MANAGING RISK (P.281-305)
2.5.1. RISK CONCEPTS
Managing risk in projects includes all sources of uncertainty, can be both positive and/or negative and can also
exists at the overall project level. The two levels of risks include:
1. Risks in the project:
o Risk events/individual risk = a specific discrete thing that might or might not happen in the
future, but which if they did happen would have a significant effect on achievement of one or
more project objectives.
2. Risk of the project (two definitions):
o Project risk = the exposure of stakeholders to the consequences of variations in the outcome
o Overall project risk = the effect of uncertainty on the project as a whole
The project manager is required to manage:
- Individual risk/risk events -> identifying, assessing and managing individual risk
- (overall) project risk -> account to the project sponsor, project owner and other stakeholders overall
project risk
How to manage both type of risks:
▪ Overall project risk should be addressed as soon as the
pre-project or concept phase, when the scope and
objectives are clarified and agreed upon.
o Risk-reward balance should be agreed upon
through decisions about structure, scope,
content and context of the project
▪ When the project is initiated traditional project risk
process can be used to address explicitly the individual risks that lie within the project.
▪ At key points in the project it will be necessary to revisit the assessment of overall project risk
P a g i n a 25 | 35
, Summary of the hand of project management | Remco van der Schoot
2.5.2. INTRODUCING THE RISK PROCESS
Informal step Formal process Purpose
Getting started [what are Risk process To define the scope, objections, and practical parameters of
we trying to achieve?] initiation the project risk management process
Finding risks [what could Risk To identify all currently knowable risks, including both
affect us achieving this?] identification individual risks and sources of overall project risk
Setting priorities [Which of Qualitative Risk To evaluate key characteristics of individual risks enabling
those things are most Assessment them to be prioritized for further action, and recognizing
important?] patterns of risk exposure
Quantitative To evaluate the combined effect of risks on the project
Risk Analysis outcome and assess overall project risk exposure
Deciding what to do [What Risk Response To determine appropriate response strategies and actions
shall we do about them?] Planning for each individual risk and for overall project risk
Acting [Did we do what we Risk Response To implement agreed actions, determine whether they are
said we would do?] Implementation working and identify any resultant secondary risks
Telling others [Who needs Risk To inform project stakeholders about the current level of
to know?] communication risk exposure and its implications for project success,
including both individual risks and overall project risk, as
appropriate
Keeping up to date [What Risk Review To review changes in identified risks and overall project risk
has changed and what exposure, identify additional actions as required and assess
should we do now?] the effectiveness of the project risk management process
Capturing lessons [What Post-Project To identify risk-related lessons to be learned for future
did we learn?] Review projects
P a g i n a 26 | 35
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