How to Manage Project Opportunity and Risk (eBook)

Stephen Ward is Professor of Management and Deputy Head in the School of Management, University of Southampton. For more than thirty years his teaching, research and consulting activities has focussed on risk and uncertainty management. He was founding Director of Southampton's MSc Programme in Risk Management. Stephen has served on the British Standards Institute Risk Management Committee, and is a Fellow of the UK Institute of Risk Management. Recent research funded by the UK Institution of Civil Engineers addressed operational risk in major infrastructure projects and businesses. Stephen has published widely, including authorship of Risk Management Organisation and Context (Witherby, 2005), and jointly with Chris, Managing Project Risk and Uncertainty: A Constructively Simple Approach to Decision Making (Wiley, 2002) and Project Risk Management: Processes, Techniques and Insights (Wiley, 1997 and 2003). Chris Chapman is Emeritus Professor of Management Science in the School of Management, University of Southampton. He is a former Director of the School. He was the founding chair of the Association for Project Management Specific Interest Group on Project Risk Management. He is a Past President of the Operational Research Society, and an Honorary Fellow of the Institute of Actuaries. For more than 35 years his research has focused on risk and uncertainty management. Like Stephen, his research is grounded on extensive experience. He has worked for a number of consulting firms as an international consultant for many different industries. Chris writes from a practical but conceptually rigorous perspective. He has published extensively, including joint authorship of Management for Engineers (Wiley, 1987), Risk Analysis for Large Projects: Models, Methods and Cases (Wiley, 1987), Managing Project Risk and Uncertainty: A Constructively Simple Approach to Decision Making (Wiley, 2002) and Project Risk Management: Processes, Techniques and Insights (Wiley, 1997 and 2003).

Foreword to this edition by Mike Nichols ix

Foreword to the second edition with an update by Tony Ridley
xi

Foreword to the fi rst edition by Peter Wakeling xiii

Preface and overview by the authors xv

Acknowledgements xxv

PART I Setting the scene 1

1 Uncertainty in and around projects 3

2 Uncertainty, risk and opportunity 43

3 Key motives for uncertainty management 73

4 An overview of generic process frameworks 101

PART II The generic process in one key lifecycle stage
131

5 Define the project 133

6 Focus the process 153

7 Identify all the relevant sources of uncertainty,
response options and conditions 171

8 Structure all uncertainty 215

9 Clarify ownership 235

10 Quantify some uncertainty 251

11 Evaluate all the relevant implications 289

PART III The generic process in all lifecycle stages
325

12 Fully integrating the strategy shaping stages 327

13 Fully integrating the strategy implementation stages 365

PART IV Key corporate implications 389

14 Developing PUMP capability as a project 391

15 Contracts and governance as frameworks for enlightened
relationship management 411

16 A corporate capability perspective 435

References 463

Glossary 473

Index 479