Conventional Project Risk Management (PRM) Methodologies

Overview of the conventional PRM methodology is based on the introduction of a PRM system that comprises a PRM context, a PRM process, and PRM tools. Typical PRM process steps to identify, address, assess, monitor, etc risks are reviewed to comply with PRM context (i.e. features and challenges of a project). Main sorts of uncertainties related to risks as possible impacts on project objectives—uncertainties of identification, manageability, assessments of impacts and probabilities, and favourability—are discussed. Key PRM tools to support the PRM context and the process—a PRM plan, a bowtie diagram, a risk breakdown structure (RBS), a risk assessment matrix (RAM), and a risk register—are introduced. A role of psychological and organizational bias as a systematic error in the PRM process is elaborated.