Project Management

Dealing with Risk and Uncertainty 157

❏ The focus of your risk management efforts should be on

addressing the “downside” effects of risk—or threats.

5

10

15

20

25

30

35

40

45

50

$897K $1,118K $1,293K

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1.0

$897K $1,118K $1,293K

Total Project Cost

Probability of Underrunning

Frequency of Occurrence

Figure 8-8. Top (a) Frequency distribution chart; bottom (b) proba-
bility curve