The Benefits of Project Risk Assessment

Introduction
It can be argued that the main (even only) reason for project failure is optimistic planning. By using risk assessment to obtain more realistic estimates for a project, a more realistic plan will result and the project will be more likely to meet its forecasts.

Risk assessment benefits projects by allowing targets and contingency to be set at the right level, and contracts to be negotiated with an honest view of reality. It also benefits a project team by increasing openness, honesty and understanding within the team. By using risk assessment, the sensitivity of the project to its components will also be better understood. Risk mitigation strategies, and their effectiveness, will also be better understood.

Projects within a portfolio can be understood in terms of their interdependencies, shared resources and goals, and can be prioritized according to their risk. Risk can be balanced and managed across the portfolio.

By assessing risk to individual projects and portfolios, the whole business will be more profitable. Overall understanding, and high level strategic decision-making will be better informed by the risk assessment. Cost commitments, revenue pipelines and profit forecasts will be able to be given at a preferred level of risk, and also the sensitivity of the forecasts will be better understood.

Download the entire white paper by filling out the form below. Fields marked with a * are required.