January 2001, Volume 52, Issue 1, Pages 14 - 25

Case-Oriented Paper

An integrated approach for risk response development in project planning I Ben-David & T Raz Tel Aviv University, Israel     Correspondence to: Dr T Raz, Faculty of Management, Tel Aviv University, Ramat Aviv, Tel Aviv, 69978, Israel. E-mail: tzviraz@post.tau.ac.il

Keywords

planning;   project management;   risk management;   software development

Abstract

The risk response development phase is a major phase in the project risk management process. We present a model that integrates project work contents, risk events, and risk reduction actions and their effects into a comprehensive framework. The model allows the representation of the overlapping effects of multiple risk reduction actions and of the impacts of secondary risk events, and supports the evaluation of the total risk exposure of the project under various combinations of risk reduction actions. The model can be treated with optimisation techniques in order to generate the most cost-effective combination of risk reduction actions. In this work we describe the model, outline a solution procedure and illustrate its application with an example taken from the software industry.

Received March 1999; Accepted June 2000

^© Macmillan Publishers Ltd 2001