Keywords: risk management, integrated risk management, technology risk management, project risk management, goal-based management, risk characterisation, risk assessment
Effective risk management: a goal based approach
The United States Department of Defense (DoD) and National Aeronautics and Space Administration (NASA) have implemented ambitious risk management programmes on top research and development projects. Typically, risk is expressed strictly in terms of cost, schedule or technical performance. This approach can result in the obscuration of other important project objectives. Further, methods for systematically and effectively prioritising risk reduction efforts are not generally employed. This paper presents an analytical framework for measuring risk that expresses risk in terms of top-level project objectives. It also proposes a method for the prioritisation of risk reduction activities based on expected risk reduction, likelihood of success, and cost of implementation.