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How to Manage Project Risk?
Project risk management is certainly one of the areas that deserves a lot of attention. However, it is alarming to observe how many project managers believe it would be sufficient to add a certain percentage to their cost estimates to serve as a contingency and forget about it. Not only that, of course, this can not be considered as satisfactory risk management, the percentage is often pluck out of the air. I hope this does not sound familiar to you…
Since you are here, you are obviously concerned about project management, or respectively project risk management. I therefore would like to recommend you reading Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your Project by Tom Kendrick, PMP.
Amazon book description:
Projects-especially complex ones-are inherently risky. Between time constraints, technical challenges, and resource issues, things can easily go wrong-making the identification of potential risks an essential component of every project manager’s job. Fully updated and consistent with the Risk Management Professional (RMP) certification and the Guide to the Project Management Body of Knowledge (PMBOK®), Identifying and Managing Project Risk remains the definitive resource for project managers seeking to guard against failure. Drawing on real-world situations and hundreds of examples, the book outlines the risk management process and provides proven methods for project risk planning. Readers will learn how to use high-level risk assessment tools, implement a system for monitoring and controlling projects, and properly document every consideration. Analyzing aspects such as project scope, available resources, and scheduling, the third edition also offers fresh guidance on program risk management, qualitative and quantitative risk analysis, simulation and modeling, and significant “non-project” risks. This practical book will help readers eliminate surprises and keep projects on track.
I am glad to have bought the Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your Project . The subject is explained to the detail on one hand and nevertheless written in understandable language. For me a clear MUST HAVE for all project managers.