Extending the use of risk analysis in project management

Abstract

The paper is concerned with the expansion of the role of risk analysis in project management. A broad definition of risk analysis is adopted that involves appropriate identification, appreciation and management of project risks. The possible roles for risk analysis in project management are examined. Initially, risk analysis can assist in accept/reject decisions and project design, and subsequently in the development of risk-management strategies. Where a project involves contracting parties, risk analysis can help to determine the appropriate allocation of project risks. Reasons why risk analysis may not be as widely used as it should be are identified. A critical discussion of these arguments highlights additional aspects of the use of risk analysis in practice.