Analysis
The introductory two chapters lay the groundwork for people that are new to project or risk management. He starts with the definition of risk as the "loss multiplied by the likelihood" and expands from there. He explains that this relates to uncertainty in estimates for duration and cost. He identifies the benefits as:
- Lowering cost and confusion
- Prioritization and stakeholder support
- Input for portfolio management
- Mitigation
- Setting expectations and establishing reserves
- Communication and control
Read more about this topic: Identifying And Managing Project Risk
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