Misunderstanding risk on big projects is a recipe for disaster

摘要

A lack of understanding about the terms used to interpret risk assessments on major projects has created a culture of misinformation that could undermine investment. With risk management increasingly being viewed as an add-on responsibility of the project manager, the misinterpretation of key risk data is becoming widespread. Overreliance on risk software tools could be partly to blame, as they may foster complacency among project managers about reporting risk-management data back to the business. As a result, investors and other stakeholders may be unaware that their risk exposure is greater than they had thought. This is a recipe for disaster, and if mitigation strategies prove ineffective, investors could be forced to pull out - potentially leading to business insolvency.