About the Authors vii Foreword to the Second Edition xi Preface xiii Acknowledgements xv Introduction to Project Risk Management xvii Part I Project Risk Management: Principles and Framework 1 Chapter 1 Principles of Effective Project Risk Management 3 Chapter 2 Project Phases and Approval Decisions 9 Chapter 3 Framework for Managing Risk in Projects 23 Part II The Project Risk Management Process 33 Chapter 4 The Approach to Managing Risk in Projects 35 Chapter 5 Communication and Consultation 41 Chapter 6 Establish the Context 49 Chapter 7 Risk Identification 69 Chapter 8 Qualitative Risk Analysis and Risk Evaluation 77 Chapter 9 Semi-Quantitative Risk Assessment for Systems and Sub-Systems 95 Chapter 10 Risk Treatment 105 Chapter 11 Monitoring and Review 117 Chapter 12 Recording and Reporting 123 Chapter 13 Managing Opportunities 129 Chapter 14 Simplifying the Process 141 Part III Quantitative Risk Analysis for Projects 151 Chapter 15 Introduction to Quantification for Project Risks 153 Chapter 16 Cost Risk Assessment 173 Chapter 17 Schedule Risk Analysis 197 Chapter 18 Investment Evaluation for Large Projects 219 Chapter 19 Risk Analysis and Economic Appraisal 241 Part IV Extending the Process 251 Chapter 20 Contracts and Risk Allocation 253 Chapter 21 Case Study: Tender Evaluation 265 Chapter 22 Market Testing and Outsourcing 271 Chapter 23 Public?Private Partnerships and Private Financing 283 Chapter 24 Technical Tools and Techniques 303 Chapter 25 Managing Environment-Related Risks 323 Chapter 26 Climate Change 345 Part V Additional Information and Supporting Material 351 Chapter 27 Other Approaches to Project Risk Management 353 Chapter 28 Risk Management Process Checklist 361 Chapter 29 Worksheets and Evaluation Tables 365 Chapter 30 Examples of Risks and Treatments 381 Glossary 393 References 397 Index 401
Dale Cooper has over twenty-five years of international experience with risk management for large and complex projects. He is a Fellow of the Australian Institute of Company Directors, an Affiliate of the Securities Institute of Australia, a member of the Risk Engineering Society and the Society for Risk Analysis, and an accredited provider of risk management consulting services to government agencies in Australia and New Zealand. Since late 1991, Dale Cooper has run Broadleaf Capital International, a consulting company that specialises in high-level strategic, organisational and project risk analysis, for both public and private sector clients. His risk consulting activities have included assignments in North America, Europe, Australasia, Asia and the Middle East. He is a member of the Standards Australia Technical Committee that developed the risk management standard AS/NZS 4360 and associated handbooks. Pauline Brosnich worked in engineering companies, providing risk management support with an emphasis on maximizing safety and optimizing reliability and operation of projects. She has worked extensively in the minerals, resources and transport industries. providing advice on risk management and facilitating risk workshops for projects and for operations. At Broadleaf, she has continued providing risk advice for customers in these areas as well as for Defence, government and not-for-profit organisations. She has developed in the area of providing and implementing risk management frameworks that are tailored to the individual requirements of specific organisations.