Project Management

158 Project Management

❏There are four basic steps in managing downside risk:

• identify what threats may exist,


• quantify those threats,


• determine which threats require further action, and


• take action either to reduce the probability that the
  threat will occur or to lessen its effects if it does.

❏ Perform risk management analyses with your entire team.

It represents an excellent teambuilding opportunity.

❏ Not all risk can be eliminated. Sometimes, you must sim-

ply acknowledge or accommodate its existence. A good

example of this is providing estimates that use ranges of

values rather than specific numbers.

❏ Strongly consider the use of commercially available soft-

ware for cost and schedule estimating. It’s a powerful,

easy-to-use tool.

1.4.6 Piping

1.3.1 Equipment - Procurement

1.4.5 Equipment - Installation

1.4.8 Process Controls

1.4.2 Concrete

1.4.1 Site Prep

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The Impact on Total Project Expenditure

Figure 8-8. (c) tornado diagram