Project Management for IT-Related Projects

7 RISK

LEARNING OUTCOMES

When you have completed this chapter you should be able to demonstrate an understanding of the following:

• identification and prioritisation of risks;
• assessment of the probability and impact of risks, i.e. risk exposure;
• risk reduction activities versus contingency actions;
• typical risks associated with information systems;
• assessment of the value of risk reduction activities;
• maintenance of risk registers.

7.1 INTRODUCTION

There are a number of definitions of risk, some embracing opportunities as well as threats. Arguably, the most used is the definition provided in PRINCE2, the project management standard sponsored by the UK government:

‘The chance of exposure to the adverse consequences of future events. ...