Methodological tools for project risk management

Abstract

The increasing size and complexity of acquisition and development projects in both the public and private sectors have begun to exceed the capabilities of traditional management techniques to control them. With every new technological development or engineering feat, human endeavours inevitably increase in their complexity and ambition. This trend has led to an explosion in the size and sophistication of projects by government and private industry to develop and acquire technology-based systems. These systems are characterised by the often unpredictable interaction of people, organisations, and hardware. This complexity has imposed a complementary rise in the level of adverse events, particularly in acquisition projects, that I often difficult to identify, analyse, and manage. Indeed, managing the risk associated with the acquisition of large-scale technology-based systems has become a challenging task. Such risks cost overrun, time delay in project completion, and not meeting a project’s performance criteria. This paper presents the scientifical results regarding to principles and guidelines necessary to conduct risk management in an adaptable and repeatable framework, showing the tools and method developed in the course of conducting risk management on many different projects.