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  1. Introduction ‘Risk’ is defined by the International Standards Organisation (ISO) 31000:2018 as “effect of uncertainty on objectives”. This is a common definition in risk literature. An alternative definition is “an event, situation which may influence an entity’s ability to achieve desired objectives successfully”. Risk management can therefore be defined as the proactive control of risk in a manner that promotes positive outcomes. For example, for a commuter with the objective of driving a car to work and arriving on time, risks could include: high traffic, a traffic acc
  2. Introduction In order to effectively manage the risks associated with complex, high profile projects, project managers need a set of tools tailored to a project context. Project management decision-making, including the level of contingency set aside for budget and schedule overruns, can be affected by the cognitive biases of stakeholders. Several well-established project management frameworks have risk management modules which can provide project managers with guidance in this area. Elements of project risk management Typical elements of a project risk management fram
  3. Introduction Because risk has many forms, sources and contexts, there are numerous branches of risk management. Some examples which engineers may come across in their careers include enterprise risk management, project risk management and risk engineering. This page describes some basic general concepts as an introduction to risk management. The Mechanics of Risk Management The standard process reflected in most conventional risk management environments generally follows a four-step process: Identify the risk: This could involve predicting, forecasting or documenting
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