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4.5.2 R isks to R iches : R isk M anagement R eturn on I nvestment
Publication year - 1998
Publication title -
incose international symposium
Language(s) - English
Resource type - Journals
ISSN - 2334-5837
DOI - 10.1002/j.2334-5837.1998.tb00095.x
Subject(s) - investment (military) , return on investment , business , computer science , economics , microeconomics , production (economics) , politics , political science , law
How effective is your risk management process? Risk management return on investment is the ratio of savings to cost that indicates the value of performing risk management. This paper presents a standard definition for measuring risk management return on investment: ROI (RM) . Application of this measure on two case studies provides examples of large programs with excellent risk management results. Both case studies report ROI (RM) at over 20 to 1, which is risk management nirvana. To achieve these results, the people worked hard—risk management does not make difficult work go away.