Project and Program Risk Management: A Guide to Managing Project Risks and Opportunities [Paperback]

This book is a bit light for experienced project managers who are well-versed in risk management, but I found it to be a perfect introduction to probability and risk management. It's structured in a logical order, with each chapter building on the other. It starts out with a general approach and definitions associated with risk management. It then covers how to identify risks, assess them using quantitative methods (no blindly rolling the dice here). Assessment is important. Risks are a part of our everyday life, and this part of the book shows you how to prioritize risks based on not only the impact, but the probability. Impact x probability is the basis for indexing and prioritizing risks. You are also shown how to either eliminate, mitigate or transfer the risk that you identify and assess.

Because I am a consultant and live in the world of statements of work and contracts I thought the brief section on dealing with risks in contracts was a highlight. I also liked the chapter on managing contingency allowances.

This is a valuable book for new project managers who need to get quickly acquainted with risk management, and for anyone who wants to learn the fundamentals of probability and how to calculate and control risks. It is straightforward and gives you an awareness of what risks are and how to effectively manage them. My mentor would say, "a risk is an opportunity in disguise." I never appreciated or fully understood that until I read this book.