Fundamentals of Risk Management

FIgURE 
31.3
Project lifecycle
Project Planning
• Detailed design
• Scheduling
• Procurement
Project Closure
• Handover
• Project review
Project Inception
• Feasibility study
• Outline cost plan
• Appointments
Project Execution
• Construction
• Cost reporting
• Quality check
Project
Lifecycle
soURCe: reproduced with permission from Feasible.

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Risk governance
376
Many organizations include a fourth variable in what is otherwise known as
the project triangle. This uncertainty may relate to the scope of the project, the
effectiveness of the tactics that gave rise to the project or the ability of the project
to comply with stakeholder expectations. The stakeholders will almost certainly
include regulators and so compliance is often added as the fourth output from a 
project that has to be successfully delivered. Sustainability is also used by some
organizations as an alternative fourth output from a project. The simple approach
is to include compliance and sustainability as part of the third output of quality, 
specification or performance.
Take the example of refurbishing a block of flats. There will be a large number
of interested parties, including architects and the principal contractor. External
agencies will also need to be involved, including planning, building regulations
requirements, health and safety, environmental protection and the utilities. Successful 
management of a project of this type will require the following:
●
●
making risk management part of the project;
●
●
identifying risks early in the project;
FIgURE 
31.4
Decreasing uncertainty during the project
High
Stakeholder influence, risk and uncertainty
Cost of changes
Low
Magnitude
Project Time
Inception
Planning
Execution
Closure

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