Term Paper on Project Risk Management

14904 WordsMay 4, 201160 Pages
CHAPTER 1 INTRODUCTION 1.1 INTRODUCTION Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Project risk management includes the processes concerned with identifying, analyzing, and responding to project risk. It includes maximizing the results of positive events and minimizing the consequences of adverse events. Generally, risk is a choice in an environment rather than a fate. BS 6079 (British Standard Institution 1996) defines risk as ‘It is the uncertainty inherent in plans and possibility of something happening that can affect the prospects of achieving, business or project goals’. The word ‘‘risk’’ was…show more content…
The grading of a project at the pre-bid stage would essentially be a comment on the risks involved in undertaking the project. Credit rating agencies like Crisil, Fitch Ratings have been asked to develop a grading methodology for risk-rating the projects. But some industry experts feel that a risk rating system will discourage private participation in rural development projects on a large scale. Most of the rural development projects are likely to get lower ratings which may drive away private investors and financiers from participating in such projects. 1.3 ORGANISATION OF THESIS The thesis is organized into seven chapters. The first chapter gives an introduction to the present study. The second chapter gives detail concepts of risk management. The third chapter presents the objective of this investigation. Literature survey is explained in the chapter four. Research methodology is given in the chapter five. The analysis of results is in chapter six. Chapter seven gives the conclusion drawn from this investigation and suggestions for future work. Finally the bibliographic references are given at the end. CHAPTER 2 CONCEPTS OF RISK ANALYSIS AND MANAGEMENT 2.1 RISK CONCEPTS Risk is a multi-facet concept. In the context of construction industry, it could be the likelihood of the occurrence of a definite event/factor or combination of events/factors which occur during the whole
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