Loading...

Project RISAK and QM: 2 Pages APA format Paper. ($10 only and NO plagiarism)

Open Posted By: highheaven1 Date: 05/06/2021 High School Report Writing

 #1 Overview

Over the past few decades, one of the most common types of projects within a business is the development of a new piece of software to facilitate a certain facet of business operations.  The assignment will entail a project concerned with the creation of a new version of business expense software for the entry of, tracking of, payment of business expenses accrued by organizational members during normal business operations as other related issues such as reimbursing employees for expenses they personally paid for during their business related travel.,

Assignment

Your first task is to create a risk matrix in EXCEL.

Identify the risks to be addressed with a rational as to why you have chosen these risks from the matrix.

Explain which of the four remediation methodologies you will use for each risk and why.#2

  • Define Quality?
  • What does Total Quality Management emphasize?
  • State the Deming philosophy.
  • What are the major steps for an organization to follow in implementing TQM?
Category: Mathematics & Physics Subjects: Algebra Deadline: 24 Hours Budget: $80 - $120 Pages: 2-3 Pages (Short Assignment)

Attachment 1

Managing Project Risks

Managing Project Risks

Peter J Edwards RMIT University Australia

Paulo Vaz Serra University of Melbourne Australia

Michael Edwards

This edition first published 2020 © 2020 John Wiley & Sons Ltd

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to obtain permission to reuse material from this title is available at http://www.wiley.com/go/permissions.

The right of Peter J Edwards, Paulo Vaz Serra and Michael Edwards to be identified as the authors of this work has been asserted in accordance with law.

Registered Offices John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030, USA John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, UK

Editorial Office 9600 Garsington Road, Oxford, OX4 2DQ, UK

For details of our global editorial offices, customer services, and more information about Wiley products visit us at www.wiley.com.

Wiley also publishes its books in a variety of electronic formats and by print‐on‐demand. Some content that appears in standard print versions of this book may not be available in other formats.

Limit of Liability/Disclaimer of Warranty While the publisher and authors have used their best efforts in preparing this work, they make no representations or warranties with respect to the accuracy or completeness of the contents of this work and specifically disclaim all warranties, including without limitation any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives, written sales materials or promotional statements for this work. The fact that an organization, website, or product is referred to in this work as a citation and/or potential source of further information does not mean that the publisher and authors endorse the information or services the organization, website, or product may provide or recommendations it may make. This work is sold with the understanding that the publisher is not engaged in rendering professional services. The advice and strategies contained herein may not be suitable for your situation. You should consult with a specialist where appropriate. Further, readers should be aware that websites listed in this work may have changed or disappeared between when this work was written and when it is read. Neither the publisher nor authors shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Library of Congress Cataloging-in-Publication Data Names: Edwards, Peter J. (Peter John), 1940- | Vaz Serra, Paulo, 1966- author. | Edwards, Michael, 1969- author. Title: Managing project risks / Peter J. Edwards, Paulo Vaz Serra, Michael Edwards. Description: Hoboken, NJ : Wiley-Blackwell, 2020. | Includes bibliographical references and index. | Identifiers: LCCN 2019010837 (print) | LCCN 2019016405 (ebook) | ISBN 9781119489764 (Adobe PDF) | ISBN 9781119489733 (ePub) | ISBN 9781119489757 (hardcover) Subjects: LCSH: Risk management. | Project management. Classification: LCC HD61 (ebook) | LCC HD61 .E3744 2019 (print) | DDC 658.4/04--dc23 LC record available at https://lccn.loc.gov/2019010837

Cover Design: Wiley Cover Image: © Vijay Patel / iStockphoto

Set in 10/12pt WarnockPro by SPi Global, Chennai, India

10 9 8 7 6 5 4 3 2 1

v

List of Tables xv List of Figures xvii Preface xix Acknowledgements xxiii Glossary xxv

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 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 13 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 16 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 upon Organisational Structure 24 2.8.5 Risk Classification Based upon Project Phases 25 2.8.6 Customised Hybrid Approaches to Risk Classification 26 2.8.7 Multisystem Risk Classification 27

Contents

Contentsvi

2.9 Risk Communication 28 2.10 Summary 28 References 29

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 The Composition of Projects 41 3.6 Processes of Project Implementation 43 3.7 IT Project Example 44 3.7.1 Ideation and Concept Development 45 3.7.2 Project Development Stage 45 3.7.3 Project Deployment and Operation 46 3.7.4 Operational Maintenance 46 3.8 Organisational Structures for Projects 46 3.9 Project Stakeholder Relationships 47 3.10 Stakeholder Organisational Structures 55 3.10.1 Simple Structures 55 3.10.2 Machine Bureaucracies 55 3.10.3 Professional Bureaucracies 57 3.10.4 Divisionalised Forms 59 3.10.5 Adhocracies 60 3.11 Modes of Organisational Management 60 3.12 Project Stakeholder Decision Making 61 3.13 ‘Risky’ Projects 65 3.14 Summary 67 References 68

4 Project Risk Management Systems 69 4.1 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: Identify Risks 77 4.5.3 C1: Analyse Risks 77 4.5.4 C2: Evaluate Risks 77 4.5.5 D: Respond to Risks 78 4.5.6 E: Monitor and Control Risks 78 4.5.7 F: Capture Project Risk Knowledge 79 4.6 Project Stages and Risk Management Workshops 79

Contents vii

4.6.1 Construction Project Example 79 4.6.1.1 The Design‐Bid Stage 81 4.6.1.2 The Build Stage 83 4.6.2 IT Project Example 84 4.7 A Project Risk Register Template 86 4.8 Summary 88 References 88

5 Project Risk Contexts and Drivers 91 5.1 Introduction 91 5.2 The Contextualising Process 92 5.3 Internal Contexts as Risk Drivers 93 5.4 External Contexts as Risk Drivers 94 5.4.1 Physical Contexts 96 5.4.2 Technical Contexts 97 5.4.3 Economic Contexts 98 5.4.4 Social Contexts 99 5.5 Using Contextual Information 100 5.6 Summary 101 Reference 101

6 Approach to Project Risk Identification 103 6.1 Introduction 103 6.2 Approach to Risk Identification 104 6.3 Workshop Timing 105 6.4 Types of Risk Identification Techniques 110 6.4.1 Activity‐Related Techniques 112 6.4.2 Analytical Techniques 112 6.4.3 Associated Representative Techniques 113 6.4.4 Functional Value Technique 114 6.4.5 Matrices 115 6.4.6 Simulation and Visualisation Techniques 115 6.4.7 Speculative Techniques 115 6.4.8 Structural and Management Tools 116 6.5 Summary 116 Reference 117

7 Project Risk Identification Tools 119 7.1 Introduction 119 7.2 Activity‐Related Tools 120 7.2.1 Work Breakdown Structures 120 7.2.2 Bar Charts 124 7.2.3 Critical Path Networks 125 7.3 Analytical Tools 128 7.3.1 Decision Tree Analysis 128 7.3.2 Event Tree Analysis 130 7.3.3 Fault Tree Analysis 131

Contentsviii

7.3.4 Failure Modes and Effects Criticality Analysis 133 7.3.5 Hazard and Operability Studies 134 7.3.6 Safety Hazard Analysis (SHA) 135 7.4 Associated Representative Tools 137 7.4.1 Contextualisation 138 7.4.2 Checklists 138 7.4.3 Financially Related Tools 140 7.4.4 Procedural Tools 140 7.4.5 Design/Cost Related Tools 144 7.4.6 Risk Related Tools 146 7.5 Matrix Tools 149 7.6 Simulation and Visualisation Tools 149 7.7 Speculation Tools 153 7.7.1 Scenario Testing 153 7.7.2 Stress Testing 155 7.8 Structural and Management Tools 155 7.9 Risk Identification Statements 156 7.10 Summary 158 References 160

8 Project Risk Analysis and Evaluation 161 8.1 Introduction 161 8.2 Qualitative Analysis 163 8.3 Assessing Likelihood 164 8.4 Assessing Impacts 167 8.5 Evaluating Risk Severity 168 8.6 Quantitative Analysis 172 8.7 Risk Mapping 179 8.8 Summary 181 References 182

9 Risk Response and Treatment Options 183 9.1 Introduction 183 9.2 Risk Attitudes and Appetites 184 9.3 Existing Risk Controls 187 9.4 Risk Response Options 188 9.4.1 Risk Avoidance 188 9.4.2 Risk Transfer 190 9.4.3 Risk Reduction and Retention 192 9.4.4 Risk Retention 192 9.4.5 Combination Responses to Risk 193 9.5 Risk Treatment Options 194 9.6 Risk Mitigation Principles 195 9.7 Strategic Use of ALARP (‘As Low as Reasonably Practical’) 197 9.8 Reassessment 198 9.9 Recording Decisions 198 9.10 Summary 198 References 199

Contents ix

10 Risk Monitoring and Control 201 10.1 Introduction 201 10.2 Assigning Responsibility 202 10.3 Monitoring Procedures 204 10.3.1 Negligible Risks 205 10.3.2 Low Risks 205 10.3.3 Medium Risks 205 10.3.4 High Risks 206 10.3.5 Extreme Risks 206 10.4 Control Measures 207 10.4.1 Negligible Risks 207 10.4.2 Low Risks 207 10.4.3 Medium Risks 207 10.4.4 High Risks 207 10.4.5 Extreme Risks 207 10.5 Reporting Processes 209 10.6 Dealing with New Risks 210 10.7 Disaster Planning and Recovery 211 10.8 Capturing Project Risk Knowledge 212 10.9 Summary 213 References 213

11 Project Risk Knowledge Management 215 11.1 Introduction 215 11.2 Knowledge Definitions and Types 216 11.3 Knowledge Transformation 217 11.4 Types and Forms of Knowledge 218 11.5 Organisational Culture and Knowledge Management 219 11.6 The Knowledge Creation Cycle 220 11.6.1 Stage 1 (Tacit to Tacit): Use and Validate 221 11.6.2 Stage 2 (Tacit to Explicit): Identify and Capture 221 11.6.3 Stage 3 (Explicit to Explicit): Codify and Store 221 11.6.4 Stage 4 (Explicit to Tacit): Share and Update 221 11.6.5 Using and Validating Knowledge 222 11.6.6 Identifying and Capturing Knowledge 222 11.6.7 Codifying and Storing Knowledge 224 11.6.8 Sharing and Updating Knowledge 225 11.7 Additional Issues of Organisational Culture 226 11.8 KMS Alignment and Information Redundancy 226 11.9 Tools and Techniques for Eliciting Risk Knowledge 227 11.9.1 Brainstorming Sessions 227 11.9.2 Storytelling 227 11.9.3 Communities of Practice 230 11.9.4 Networking 230 11.9.5 Project Reviews, Project Debriefings, and ‘Lessons Learned’ 230 11.9.6 Mentoring and Apprenticeships 231 11.9.7 Induction and Training Courses 231 11.9.8 Workplace Design 231

Contentsx

11.9.9 People Finders 231 11.9.10 Intranets and IT Platforms 232 11.9.11 Internet Search Engines and Alerting Services 232 11.9.12 Organisational Culture 232 11.9.13 PRMS‐Related Tools 232 11.10 Developing Organisational Risk Wisdom 233 11.11 Project and Organisational Risk Register Architecture 233 11.11.1 Capturing Project Risk Experiences 234 11.11.2 Project Risk Registers 234 11.11.3 Organisational Risk Registers 235 11.12 Challenges for Implementing Risk Knowledge Management

Systems 237 11.12.1 Issues Relating to Knowledge Itself 237 11.12.2 Storing, Accessing, and Using Knowledge 238 11.12.3 Knowledge System Development and Implementation Costs 238 11.12.3.1 Concern with Financial Issues and Return on Investment 239 11.12.3.2 Concern with Time Management and ‘Unproductive Tasks’ 239 11.13 Communication and Risk Knowledge Management 240 11.14 Summary 242 References 243

12 Cultural Shaping of Risk 245 12.1 Introduction 245 12.2 Culture in Society 246 12.3 Organisational Cultures 247 12.3.1 Organisational Scans 249 12.3.2 The Organisational Scanning Process 252 12.4 External Cultures as Project Risk Shapers 253 12.4.1 Media Scans 253 12.5 Organisational Cultures of Other Project Stakeholders 254 12.6 Applying Cultural Shaping in Project Risk

Management 255 12.7 Summary 259 Reference 260

13 Project Complexity and Risk 261 13.1 Introduction 261 13.2 The Concept of Complexity 261 13.2.1 Differentiation 264 13.2.2 Interdependency 267 13.3 Relative Complexity 268 13.4 Uncertainty and Project Complexity 270 13.5 Identifying and Mapping Complexity 272 13.6 Influence of Complexity on Risk Management 273 13.7 Complexity and Mega‐projects 273 13.8 Summary 276 References 276

Contents xi

14 Political Risk 277 14.1 Introduction 277 14.2 Political Spheres 279 14.3 Dimensions of Political Risk Factors 280 14.4 Examples of Political Risks 281 14.5 Political Stakeholders 284 14.6 Managing Political Risks 284 14.6.1 Contextualising 284 14.6.2 Identifying Risks 285 14.6.3 Analysing and Assessing Risks 286 14.6.4 Responding to Risks 287 14.6.5 Monitoring and Controlling Risks 287 14.6.6 Knowledge Capture 287 14.7 In‐house Political Risks 288 14.8 More Extreme Political Threat Risks 288 14.9 Summary 290 Reference 291

15 Opportunity Risk Management 293 15.1 Introduction 293 15.2 Concept of Opportunity Risk 294 15.3 Opportunity Risk in Projects 295 15.4 Examples of Opportunity Risks 296 15.4.1 IT Brand Product Personalisation Service 296 15.4.2 Botanic Gardens Special Display Project 297 15.4.3 Case Study A (PPP Correctional Facility) 297 15.4.4 Case Study C (Aid‐Funded Pacific Rim Island Civic Project) 298 15.5 Managing Opportunity Risks 298 15.5.1 Implications for Personnel 298 15.5.2 Implications for the PRMS 299 15.6 Summary 306 Reference 307

16 Strategic Risk Management 309 16.1 Introduction 309 16.2 Strategic Issues for Project Risk Management 310 16.2.1 PRMS Implementation 312 16.2.2 System Separation 313 16.2.3 System Inception 314 16.2.4 Initial System Application 315 16.2.5 Roles and Responsibilities 315 16.2.6 PRMS Process Approach 317 16.2.7 Risk Knowledge Management 318 16.2.8 PRMS Maintenance and Development 319 16.2.9 Disaster Preparedness 319 16.3 PRMS Process Strategies 321 16.3.1 Project Contextualisation 321

Contentsxii

16.3.2 Project Risk Identification Strategies 322 16.3.3 Quantitative and Qualitative Risk Analysis Strategies 322 16.3.4 Risk Response and Treatment Strategies 324 16.3.5 Risk Monitoring and Control Strategies 325 16.3.6 Risk Knowledge Capture Strategies 325 16.4 Summary 325 References 326

17 Planning, Building, and Maturing a Project Risk Management System 327 17.1 Introduction 327 17.2 PRMS Objectives 328 17.3 Planning and Designing the PRMS 329 17.3.1 Planning the PRMS 329 17.3.2 Designing the System 330 17.4 Risk Management Maturity 333 17.4.1 Level 1 PRMS Maturity (Mostly Unaware) 333 17.4.2 Level 2 PRMS Maturity (Starting) 334 17.4.3 Level 3 PRMS Maturity (Growing) 336 17.4.4 Level 4 RM Maturity (Maturing) 337 17.5 Building the PRMS 339 17.5.1 Organising the PRMS Project 339 17.5.2 PRMS Specialists 339 17.5.3 System Building Tasks 340 17.5.4 Component Testing 341 17.5.5 PRMS Trials 341 17.5.6 PRMS Roll‐Out 342 17.6 PRMS Performance Review and Improvement Cycle 343 17.6.1 Review Criteria 343 17.6.2 System Benchmarking 346 17.6.3 Addressing System Decay 347 17.6.4 Review Frequency 348 17.7 Summary 348 References 349

18 Computer Applications 351 18.1 Introduction 351 18.2 Project Risk Management System (PRMS) Software

Applications 352 18.2.1 Tables and Matrices 355 18.2.2 Spreadsheets 356 18.2.3 Project Management Systems 357 18.2.4 Bespoke Risk Knowledge Management Systems (RKMSs) 358 18.3 Other Information Technologies and Tools 359 18.3.1 Simulation Systems 359 18.3.2 Smart Sensors 359 18.3.3 Aerial Drones 360 18.4 Summary 360

Contents xiii

19 Communicating Risk 363 19.1 Introduction 363 19.2 Communication Theory and Models 364 19.2.1 Communication Theories in the Model 364 19.2.2 Other Theory Elements of the Model 365 19.2.3 Processes in the Model 366 19.3 Components in the Communication Process 366 19.3.1 Senders 367 19.3.2 Receivers 367 19.3.3 Messages 367 19.3.4 Media 368 19.3.5 Channels 369 19.3.6 Relays 369 19.3.7 Filters 369 19.3.8 Interference 370 19.3.9 Feedback 370 19.4 Communicating Risk in the PRMS Cycle 370 19.5 Communicating Project Risk Beyond the Project Stakeholder

Organisations 372 19.5.1 Promotional Announcements 372 19.5.2 Communicating Risk in Adverse or Challenging Environments 372 19.5.3 Communication in Extensive Advisory Loops 373 19.6 Evaluating Risk Communication 374 19.7 Summary 374 References 375

20 Conclusions 377 20.1 Introduction 377 20.2 Current State of Project Risk Management 378 20.2.1 Changes in Business Conditions 379 20.2.2 More Serious Risk Impacts and Consequences 379 20.2.3 Public Expectations and Regulations 379 20.2.4 Publication of Standards and Texts 379 20.2.5 Tertiary Curriculum Changes 380 20.2.6 Continuing Issues with Contemporary PRMSs 380 20.3 Future Project Risk Management 381 20.4 Checking Your Reading Satisfaction 383 20.4.1 Risk 383 20.4.2 Projects 383 20.4.3 PRMSs 384 20.4.4 Risk Contexts 384 20.4.5 Risk Identification 385 20.4.6 Risk Assessment 385 20.4.7 Risk Response 386 20.4.8 Risk Monitoring and Control 386 20.4.9 Risk Knowledge Management 387 20.4.10 Risk and Culture 387

Contentsxiv

20.4.11 Complexity 387 20.4.12 Political Risk 388 20.4.13 Opportunity Risk 388 20.4.14 Strategic Risk Management 389 20.4.15 Building and Maturing a PRMS 389 20.4.16 Computer Applications 389 20.4.17 Communicating Risk 390 20.4.18 Case Studies 390 20.5 Closing Remarks 391

Case Study A: Public–Private Partnership (PPP) Correctional Facilities Project 393

Case Study B: Rail Improvement Project 403

Case Study C: PM Consultant and a Government Aid–Funded Pacific Rim Project 409

Case Study D: High‐Capacity Metropolitan Train Mock‐up Project 415

Case Study E: Hot‐Rod Car Project 417

Case Study F: Aquatic Theme Park Project 421

Index 425

xv

List of Tables

Table 2.1 A certainty/uncertainty matrix for project risk management 13 Table 2.2 Generic source‐event risk classification 20 Table 2.3 Examples of natural category risk events 21 Table 2.4 Examples of human category risk events 23 Table 2.5 Risk classification by organisational structure 25 Table 2.6 Customised hybrid approach to risk classification 26 Table 2.7 Typical internal category risks for a customised classification

system 26 Table 3.1 Procurement objectives for a public high school project 34 Table 3.2 Operational objectives for café website project 36 Table 3.3 Client objectives for the Singapore Gardens by the Bay (SGBB)

projects 37 Table 3.4 Key elements to decision making 63 Table 4.1 Project risk register template (part 1) 86 Table 4.2 Project risk register template (part 2) 87 Table 6.1 A typology of risk identification techniques 111 Table 7.1 Typical activities for reinforced concrete floor slab casting cycle

for a multistorey building 120 Table 7.2 Resourced slab casting cycle activity schedule 123 Table 7.3 Bar chart for product personalisation IT project 124 Table 7.4 Task list for room renovation project 126 Table 7.5 Failure modes and effects criticality analysis (FMECA) example 133 Table 7.6 Hazard and operability studies (HAZOPS) example 134 Table 7.7 Safety hazard analysis (SHA) example 136 Table 7.8 Typical architect’s preliminary checklist for a construction project 139 Table 7.9 Schedule for botanic gardens display event 141 Table 7.10 Botanic gardens display event: opening ceremony schedule 142 Table 7.11 Typical list of design elements for a construction project 145 Table 7.12 An IT project attributes checklist for assessing project riskiness 147 Table 7.13 Resourced WBS/generic risk category matrix 150 Table 7.14 Project risk item record 158 Table 8.1 Three‐point risk assessment measures 164 Table 8.2 Five‐point measures of likelihood 165

List of Tablesxvi

Table 8.3 Alternative five‐point measures of likelihood 166 Table 8.4 Five‐point measures of impact 167 Table 8.5 Multiple‐impact risk assessment measures 169 Table 8.6 Three‐point measure of risk severity 170 Table 8.7 Five‐point measure of risk severity 171 Table 8.8 Franchise first‐year trading loss EMV 177 Table 8.9 Comparative project risk severity assessments 180 Table 11.1 Correlation matrix between tools and activities for risk knowledge

creation 228 Table 11.2 A project risk debriefing record template 234 Table 11.3 Strengths and weaknesses of small and medium‐sized enterprises

(compared to large organisations) for knowledge management 238 Table 12.1 Typical areas for culturally influenced organisational practice 251 Table 12.2 Negative and positive organisational cultures 251 Table 13.1 An uncertainty/resolution space complexity matrix for projects 263 Table 13.2 Differentiation complexity in projects 269 Table 14.1 Spheres commonly associated with politics 279 Table 14.2 Factors associated with political risks 280 Table 15.1 Five‐point interval scale for opportunity risk financial impact 301 Table 15.2 Multiple measures of opportunity risk impact 302 Table 15.3 Three‐point opportunity risk potential matrix 303 Table 15.4 Five‐point opportunity risk potential matrix 304 Table 15.5 Comparison between threat and opportunity risk treatment

options 304 Table 16.1 Strategic PRM issues 311 Table 17.1 PRMS design framework 331 Table 17.2 PRMS performance review criteria 344 Table 18.1 PRMS computer software application types 353 Table 18.2 Conditional statements for three‐point risk severity rating 356 Table A.1 D&C Contractor’s project risk management processes

and procedures 396 Table A.2 Contextual issues explored by D & C contractor 398 Table A.3 ‘Top 10’ contractor risks identified for correctional facility project 400 Table B.1 Level crossing site packages and procurement systems 405 Table F.1 Functional management for aquatic theme park project 422 Table F.2 Company–project alignment policy 424

xvii

Figure 2.1 Threat and opportunity risk 10 Figure 2.2 Project information/uncertainty symmetry 12 Figure 3.1 A hierarchy of project objectives 33 Figure 3.2 Project phases 41 Figure 3.3 Project elements 42 Figure 3.4 Project interphase decision making effects 43 Figure 3.5 Project stakeholders 47 Figure 3.6 Project stakeholder coalitions 48 Figure 3.7 Hospital project organogram 49 Figure 3.8 Settlement upgrading project organogram 50 Figure 3.9 Electrical substation project organogram 52 Figure 3.10 Residential development project organogram 53 Figure 3.11 Construction company organisational structure 56 Figure 3.12 Engineering consultancy organisational structure 57 Figure 3.13 A project decision making process 62 Figure 4.1 Approaches to managing project risks 71 Figure 4.2 The dynamic cycle of project risk management 75 Figure 4.3 A design‐build (DB) project’s design‐bid stage: information, uncertainty,

and risk management 80 Figure 4.4 A design‐build (DB) project’s build stage: information, uncertainty, and

risk management 81 Figure 4.5 An IT project’s concept development stage: information, uncertainty,

and risk management 84 Figure 4.6 An IT project’s development stage: information, uncertainty, and risk

management 85 Figure 5.1 Project system boundaries 95 Figure. 5.2 Project risk driver contexts 96 Figure 6.1 Design consultant risk management workshops in a construction

project inception/design stage 106 Figure 6.2 Bidder’s risk management workshops in the construction project

tendering stage 107 Figure 6.3 Contractor’s risk management workshops and the project construction

process 108 Figure 7.1 Screenshot (MS Project) of critical path network (CPN) example 127 Figure 7.2 Decision tree analysis (DTA) example 129

List of Figures

List of Figuresxviii

Figure 7.3 Event tree analysis (ETA) example 131 Figure 7.4 Fault tree analysis (FTA) example 132 Figure 8.1 Expected utilities for DTA of travel outcomes 174 Figure 8.2 Outcome probabilities for ETA of ferry vehicle loading door

incident 175 Figure 8.3 FTA causal factor probabilities for chute deployment failure 177 Figure 8.4 Risk severity spider chart 181 Figure 9.1 Strategic risk responses 197 Figure 10.1 The risk severity–management responsibility relationship 203 Figure 11.1 A knowledge transformation sequence 217 Figure 11.2 The knowledge creation cycle 220 Figure 11.3 An interactive project risk management knowledge process 236 Figure 12.1 Elements of organisational culture 250 Figure 12.2 Stakeholder‐to‐project cultural risk shaping and management 256 Figure 13.1 Project elements, environments, and complexity factors 271 Figure 17.1 Risk management maturity levels 334 Figure 17.2 Level 2 organisational project risk management maturity 335 Figure 17.3 Level 3 organisational project risk management maturity 336 Figure 17.4 Level 4 organisational project risk management maturity 338 Figure 19.1 A hybrid multi‐model of human and project risk communication 364 Figure A.1 State correctional facility project structure 394 Figure B.1 Level crossing removal programme: simplified organisational

structure 404 Figure C.1 Simplified organisational structure for aid‐funded project 411 Figure E.1 The ‘finished’ hot‐rod car. Source: Photograph used with kind

permission of the owner 418 Figure F.1 Organogram for regional civil engineering contractor 421

xix

If ‘project’ is part of your daily vocabulary, then this book is aimed at you. It is intended to appeal to practitioners of project management across a wide range of industries and professions; to people working in the private and public sectors, and those in the arts and entertainment; as well as to business organisations, service providers, and manu- facturers. Students are very much included in our target readership as they pursue their academic journeys on the way to entering hopefully satisfying and rewarding careers.

An overview of the content is provided in Chapter  1. Besides offering a systematic approach to project risk management that we hope is easy to follow and understand, we have introduced topics generally not found in other books on this subject but which have an important bearing on how risks are managed, particularly those associated with today’s projects. The additional matters we have dealt with include risk knowledge management, cultural risk‐shaping, project complexity, and political risks. Strategic risk management is also considered. These topics are based upon our own project expe- riences, and reflections on how they might influence project risk management practice. Six project case studies (located as Appendices) are used to exemplify many of the points we make, together with many examples within the chapters.

We have adopted generic and multi‐stakeholder perspectives of projects. This means that, whatever the types of projects in which you are involved, and whatever role you play in them, you should be able to apply the principles and processes of systematic and effective risk management in your work without constantly having to recontextual- ise them.

If you are a practitioner, as either a project manager or someone who specialises in risk management, we concede that you probably just want to get on with managing your projects and the risks associated with them. The inevitable time constraints for all pro- jects will almost certainly already impact severely on the opportunities you have for reading. If this is so, then the arrangement of topics should help you. While they are predominantly sequential (in a flow process sense), the topics are distinguished as sepa- rate chapters, easily enabling you to dip in and out of them in a convenient way. The contents should meet several needs: as a refresher for your current risk management processes; as a guide to benchmarking them; or as a framework for replacing informal, reactive, and intuitive ways of dealing with project risks with a more formal, systematic, and proactive approach.

If you are a student, whatever your academic discipline, you will almost certainly be expected to take a project‐oriented approach to your studies, and will also …