Standard Project Risk Analysis Approach

Žužek Tena (), Rihar Lidija (), Berlec Tomaž () and Kušar Janez ()
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Žužek Tena: Faculty of Mechanical Engineering, University of Ljubljana, Ljubljana, Slovenia
Rihar Lidija: Faculty of Mechanical Engineering, University of Ljubljana, Ljubljana, Slovenia
Berlec Tomaž: Faculty of Mechanical Engineering, University of Ljubljana, Ljubljana, Slovenia
Kušar Janez: Faculty of Mechanical Engineering, University of Ljubljana, Ljubljana, Slovenia

Business Systems Research, 2020, vol. 11, issue 2, 149-158

Abstract: Background: To stay competitive in a highly unpredictable market of today, companies must be able to manage project risks effectively. The basis for an effective risk management is a thorough risk analysis. Despite the availability of many different risk analysis approaches, companies can be reluctant to use them, since the models are usually complex and very time consuming.Objectives: The main objective is to present a simple, yet effective risk analysis approach that can also serve as a useful basis for resolving project risks.Methods/Approach: The proposed standard risk analysis approach is based on a standard risk model that deals with risk events and impacts separately and therefore allows for a separate planning of preventive and corrective measures. To classify risks and to represent them graphically, a risk map is used.Results: The use of the proposed approach is illustrated on a die-cast tool development project. The approach proved to be very simple to use and it served as a useful basis for resolving the identified risks.Conclusions: The main advantage of the proposed approach is its simplicity and clarity. It can also be used as a quick decision-making tool in a subsequent risk resolving process.

Keywords: risk management; risk analysis; standard risk model; risk map (search for similar items in EconPapers)
JEL-codes: O22 O32 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:bit:bsrysr:v:11:y:2020:i:2:p:149-158:n:11

DOI: 10.2478/bsrj-2020-0021

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