Owner and director of Redstone Risk Ltd, Will Foulds, introduces his new report which shows that certain risk management practices lead to higher project profits.
A recent study in the International Journal of Engineering Business Management (Vol 11, 1-16), found that the level of a business’ Project Risk Management Maturity (PRMM) has a significant impact on its profit performance.
The majority of project teams conduct cost and schedule risk analysis (CSRA) for one simple reason – more realistic information = better business decisions.
Revealing the likely impact of individual risks on a project’s cost and time to complete, CSRA is a valuable tool in every project team’s toolbox. It ultimately enables organisations to turn their project risk data into meaningful messages that inform project teams, guide their decision-making and engage them in a way that many traditional project management techniques simply cannot.
Administering a quality quantitative schedule risk analysis (QSRA) on a live project is no simple task. An indisputable constraint for creating a robust QSRA is the time available to validate and probe your model for insights. As an experienced Project Risk Manager, I have certainly witnessed ample timescales to create, test, and provide risk models slip away.
