Project Risk Management

Abstract

Project risk management (PRM) is considered a relatively new project management knowledge area by many project practitioners that still possesses traits of an emergent discipline and a signature of immaturity. PRM borrows various methodologies from more mature disciplines to address its challenges. As a result, multiple versions and realizations of PRM have emerged. Quite a few national and international standards have been developed to guide and regulate PRM. At the same time PRM practitioners complain on lack of practical and efficient PRM methods and tools that are recognized and accepted by PRM community at large. Moreover, the practicality void opens a door to practitioner's prolific creativity and, unfortunately, to multiple PRM fallacies. Some of fallacies already reside in PRM standards. This chapter analyses most popular PRM fallacies and puts forward several proven PRM practices to handle and displace corresponding fallacies.