CHAPTER 14DAVID HILLSON, PHD, PMP, FAPM, FIRM;
RISK DOCTOR & PARTNERSThe word “risk” is a common and widely used part of our
daily vocabulary, relating to personal circumstances (health,
pensions, insurance, investments, etc.), society (terrorism, economic performance, food safety, etc.), and business (corporate
governance, strategy, business continuity, etc.). One area where
risk management has found particular prominence is in the
management of projects, perhaps because of the risky nature of
projects themselves. All projects to some extent are characterized by the following:
Risk Management in Practice
Each of these factors introduces significant risk into every
project, requiring a structured and proactive approach to the
management of risk if the project is to succeed.
Many see risk management as a key contributor to the success of both projects and businesses. This arises from the clear
link between risk and objectives, embodied in the definition
of the word. For example, the PMBOK® Guide states: “Risk is
an uncertain event or condition that, if it occurs, has an effect
on at least one project objective.”1 Other international standards and guidelines use similar definitions, always linking
risk with objectives.
Questia, a part of Gale, Cengage Learning. www.questia.com
Book title: The AMA Handbook of Project Management.
Contributors: Paul C. Dinsmore - Editor, Jeannette Cabanis-Brewin - Editor.
Publisher: American Management Association.
Place of publication: New York.
Publication year: 2011.
Page number: 193.
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