How to Manage Project Opportunity and Risk: Why Uncertainty Management can be a Much Better Approach than Risk Management

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9780470686492: How to Manage Project Opportunity and Risk: Why Uncertainty Management can be a Much Better Approach than Risk Management
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Since I wrote the Foreword for the second edition of this book,risk management processes have become much more widely used, butcontroversy about what should be done and how best to do it hasgrown. Managing risk is a risky business. Chapman and Ward providean in-depth explanation of why it is important to understand andmanage underlying uncertainty in all its forms, in order to realiseopportunities more fully and enhance corporate performance. Theyshow what best practice should look like. The implications go wellbeyond the conventional wisdom of project risk management,providing an enlightening new perspective.
Professor Tony M. Ridley
Imperial College London, Past President, Institution of CivilEngineers

Chris Chapman and Stephen Ward continue to educate theprofession with this masterful exposition of the differencesbetween, and the potentials for combinations of, risk, uncertaintyand opportunity. Particularly welcome is the way they integratethis trio into the project lifecycle – the bedrock of projectmanagement control and organization.
Peter W.G. Morris
Head of School and Professor of Construction and Project ManagementUniversity College London

Chris Chapman and Stephen Ward’s books on Project RiskManagement have been an essential part of my repertoire for twentyyears, and they are top of my recommended reading for the courses Ido on that subject. In this book they have enhanced their previouswork to focus on uncertainty management and emphasise more stronglyopportunities for improving project performance, rather then justidentifying what can go wrong. A structured process is an essentialpart of managing project uncertainty, and their process is one ofthe most powerful. This book will be added to my repertoire.
Rodney Turner
Professor of Project Management, SKEMA Business School Lille

A profoundly important book. With How to Manage ProjectOpportunity and Risk, Chris Chapman and Stephen Ward take agood thing and make it better. Members of the project managementprofession have been influenced for years by their insights intoproject risk management. With this latest instalment the authorsdemonstrate that risk and uncertainty needn’t be dreaded; infact, the reverse side of the ‘risk coin’ has alwaysbeen opportunity. My sincere appreciation to Chapman and Ward forturning this particular coin over and showing readers, academic andpractitioner alike, the opportunity embedded in managingprojects.
Jeffrey K. Pinto
Andrew Morrow and Elizabeth Lee Black Chair in Management ofTechnology Sam and Irene Black School of Business, Penn StateErie

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From the Inside Flap:

This re-titled and extensively rewritten book builds on the successof an established classic text. It also builds on more than thirtyfive years of successful consulting practice, addressing practicalsituations that range from major offshore oil development projectsto projects limited to replacing a domestic bathroom floorcovering. It synthesises this practical experience with a verybroad relevant literature.

The target audience includes board level senior managersresponsible for project, programme and project portfolio aspects ofcorporate policy, and their integration with corporate strategy andoperations. It includes those charged with implementing projects atall levels, including uncertainty, opportunity and risk managementprofessionals. And it includes aspiring members of thesegroups.

It shows why current project risk management practice, andrelated enterprise risk management practice, starts in the wrongplace, pursues an inappropriate set of goals, uses the wrong tools,and fails to deliver what is needed.

This book goes beyond current project risk management orthodoxyin a number of ways. One is the use of an ‘uncertaintymanagement’ perspective which transforms the scope ofopportunities to enhance corporate performance, a central theme. Asecond is a ‘whole asset lifecycle’ perspective on allaspects of change management. A third is a holistic integration ofquantitative and qualitative uncertainty management processes whichclarify opportunity and risk recognising the subjective issuesinvolved. A fourth is showing how uncertainty management and therest of project management can be integrated, and all aspects ofcorporate uncertainty, opportunity and risk management can beintegrated.

It shows how surprisingly simple approaches can lead tosurprisingly powerful insights and results – used in theright place. It also shows why some impressively sophisticated andcostly approaches involving common practice tools can createconfusion and divert management effort away from what reallymatters.

Uncertainty management as described in this book is a processdriven approach using concepts and tools which replace many commonpractice risk management ideas. They can be used to make betterdecisions with less cost, realising more opportunities for lesseffort, and taking less risk for more reward, to transformcorporate performance.

About the Author:

Stephen Ward is Professor of Management and Deputy Head inthe School of Management, University of Southampton. For more thanthirty years his teaching, research and consulting activities hasfocussed on risk and uncertainty management. He was foundingDirector of Southampton's MSc Programme in Risk Management. Stephenhas served on the British Standards Institute Risk ManagementCommittee, and is a Fellow of the UK Institute of Risk Management.Recent research funded by the UK Institution of Civil Engineersaddressed operational risk in major infrastructure projects andbusinesses. Stephen has published widely, including authorship ofRisk Management Organisation and Context (Witherby, 2005), andjointly with Chris, Managing Project Risk and Uncertainty: AConstructively Simple Approach to Decision Making (Wiley, 2002) andProject Risk Management: Processes, Techniques and Insights (Wiley,1997 and 2003).

Chris Chapman is Emeritus Professor of Management Sciencein the School of Management, University of Southampton. He is aformer Director of the School. He was the founding chair of theAssociation for Project Management Specific Interest Group onProject Risk Management. He is a Past President of the OperationalResearch Society, and an Honorary Fellow of the Institute ofActuaries. For more than 35 years his research has focused on riskand uncertainty management. Like Stephen, his research is groundedon extensive experience. He has worked for a number of consultingfirms as an international consultant for many different industries.Chris writes from a practical but conceptually rigorousperspective. He has published extensively, including jointauthorship of Management for Engineers (Wiley, 1987), Risk Analysisfor Large Projects: Models, Methods and Cases (Wiley, 1987),Managing Project Risk and Uncertainty: A Constructively SimpleApproach to Decision Making (Wiley, 2002) and Project RiskManagement: Processes, Techniques and Insights (Wiley, 1997 and2003).

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