Project risk management in analytic framework

Prasanta K. Dey*, S.K. Mukherjee

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

Risks and uncertainties are part and parcel of any project as projects are planned with many assumptions. Therefore, managing those risks is the key to project success. Although risk is present in all most all projects, large-scale construction projects are most vulnerable. Risk is by nature subjective. However, managing risk subjectively posses the danger of non-achievement of project goals. This study introduces an analytical framework for managing risk in projects. All the risk factors are identified, their effects are analyzed, and alternative responses are derived with cost implication for mitigating the identified risks. A decision-making framework is then formulated using decision tree. The expected monetary values are derived for each alternative. The responses, which require least cost is selected. The entire methodology has been explained through a case study of an oil pipeline project in India and its effectiveness in managing projects has been demonstrated. © INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING.

Original languageEnglish
Pages (from-to)419-433
Number of pages15
JournalInternational Journal of Industrial Engineering
Volume12
Issue number4
Publication statusPublished - 2005

Fingerprint

Project management
Risk management
Industrial engineering
Decision trees
Costs
Pipelines
Decision making

Keywords

  • analytic hierarchy process
  • cross-country petroleum pipeline
  • decision tree analysis
  • risk management
  • time-cost control

Cite this

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title = "Project risk management in analytic framework",
abstract = "Risks and uncertainties are part and parcel of any project as projects are planned with many assumptions. Therefore, managing those risks is the key to project success. Although risk is present in all most all projects, large-scale construction projects are most vulnerable. Risk is by nature subjective. However, managing risk subjectively posses the danger of non-achievement of project goals. This study introduces an analytical framework for managing risk in projects. All the risk factors are identified, their effects are analyzed, and alternative responses are derived with cost implication for mitigating the identified risks. A decision-making framework is then formulated using decision tree. The expected monetary values are derived for each alternative. The responses, which require least cost is selected. The entire methodology has been explained through a case study of an oil pipeline project in India and its effectiveness in managing projects has been demonstrated. {\circledC} INTERNATIONAL JOURNAL OF INDUSTRIAL ENGINEERING.",
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Project risk management in analytic framework. / Dey, Prasanta K.; Mukherjee, S.K.

In: International Journal of Industrial Engineering, Vol. 12, No. 4, 2005, p. 419-433.

Research output: Contribution to journalArticle

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