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Standard Project Risk Analysis Approach

Author

Listed:
  • 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)

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.

Suggested Citation

  • Žužek Tena & Rihar Lidija & Berlec Tomaž & Kušar Janez, 2020. "Standard Project Risk Analysis Approach," Business Systems Research, Sciendo, vol. 11(2), pages 149-158, October.
    • Handle: RePEc:bit:bsrysr:v:11:y:2020:i:2:p:149-158:n:11
    DOI: 10.2478/bsrj-2020-0021
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    risk management; risk analysis; standard risk model; risk map;
    All these keywords.

    JEL classification:

    • O22 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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