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Managing the right thing: Risk Management
Author(s) -
Langenberg Ilse,
Wit Franklin C.A.
Publication year - 1999
Publication title -
incose international symposium
Language(s) - English
Resource type - Journals
ISSN - 2334-5837
DOI - 10.1002/j.2334-5837.1999.tb00320.x
Subject(s) - risk analysis (engineering) , risk management , schedule , risk management plan , project risk management , navy , project management , it risk management , process (computing) , business , operations management , computer science , project management triangle , engineering , finance , systems engineering , archaeology , history , operating system
The product range of Hollandse Signaalapparaten consists of high‐tech military and civil products. These projects are characterized by uncertainty, which can cause financial, schedule, and performance problems. In order to keep control over the development and delivery of the projects, these problems must be tackled as early on in the project as possible. The method which enables to do so is called risk management. Risks are uncertainties that can occur during the execution in every phase of a project and that have a significant negative impact on the performance, schedule or cost of the project. Risk management can be defined as the identification, assessment and mitigation of risks in order to develop and deliver, on schedule and within cost, a system that meets the performance requirements. The risk management process consists of the following steps: Identify Risks Quantify & Prioritize Risks Plan Risk Mitigation Implement Risk Mitigation Track & Report Risks Between the distinguished steps important iterations take place and the steps should be carried out several times during each project. Risk management is an important, if not the most important, aspect of managing projects. Or as Rear Admiral Bill Carlson, United states Navy once said: “If you are not managing risk, you are managing the wrong thing.”