Risk analysis in the evaluation of non-aerospace projects

This paper is intended to outline an approach to the subject of risk management in the project environment. It is aimed primarily at those projects not traditionally considered to be suitable subjects for a risk management exercise. This does not prevent, however, applying the method on a complete and differing range of projects. The methodology covered is based on the principle that risk management should not be a discrete activity, but a basic fundamental activity of project management. The process is seen as providing the project manager with additional information on which to base decisions. A complete approach for incorporating risk management into the project control environment is given. This includes both the personnel and training required, plus the method by which integration with normal project control techniques can be achieved. The approach has been developed from project review work carried out over the past decade. The benefits of this approach to risk management are discussed.