Project risk management in analytic framework


Risks and uncertainties are part and parcel of any project as projects are planned with many assumptions. Therefore, managing those risks is the key to project success. Although risk is present in all most all projects, large-scale construction projects are most vulnerable. Risk is by nature subjective. However, managing risk subjectively posses the danger of non-achievement of project goals. This study introduces an analytical framework for managing risk in projects. All the risk factors are identified, their effects are analyzed, and alternative responses are derived with cost implication for mitigating the identified risks. A decision-making framework is then formulated using decision tree. The expected monetary values are derived for each alternative. The responses, which require least cost is selected. The entire methodology has been explained through a case study of an oil pipeline project in India and its effectiveness in managing projects has been demonstrated. © INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING.

Divisions: Aston Business School > Operations & Information Management
Aston Business School
College of Engineering & Physical Sciences > Electrical, Electronic & Power Engineering
Uncontrolled Keywords: analytic hierarchy process,cross-country petroleum pipeline,decision tree analysis,risk management,time-cost control,Industrial and Manufacturing Engineering
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Related URLs: http://www.scop ... tnerID=8YFLogxK (Scopus URL)
Published Date: 2005
Authors: Dey, Prasanta K. (ORCID Profile 0000-0002-9984-5374)
Mukherjee, S.K.


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