The Matrix of Project Risk Management in Engineering

Azad, Naser; Rashidi, Sadra

doi:10.22047/ijee.2008.581

The Matrix of Project Risk Management in Engineering

Document Type : Scientific - Research

Authors

Naser Azad ¹

Sadra Rashidi ²

¹ Assistant Professor, Islamic Azad university - South of Tehran Branch, Management Faculty

² MSc.Student in Industrial Engineering - System Management and Productivity , Islamic Azad University of Arak

https://doi.org/10.22047/ijee.2008.581

Abstract

The risk of an event or indefinite condition, if occurs, will have a positive or negative effect on one of the project's purposes. In fact a risk has a cause, and if happens, has several effects. Risk management is a systematic process which is used for diagnosis, analysis, answering, and measurement of the risk on any project. The main purpose of the risk management process is the effective management of risks. In every process, the use of related instruments for achieving the aims of process is customary. The risk management process is not an exception to this rule. The risk of matrix is one of the useful implements in risk management process. In fact the risk enables us not only to detect the risk, but also gives us an answer for measuring and controlling the risks of main project. This paper introduces the risks of project and process of matrix risk formation for better comprehension of topic we have used a sample research related to Iran's industries and two sample researches related to the industries of India. In each of these researches, the effective risk has been determined, then the matrix of risk has been formed and finally the number of risk is obtained. Through the risk number we decide to makes right decision. (In fact by use of risk number one can determine that the risk could be controlled or not).

Keywords

risk

Risk Management

Matrix

project external risks

risk management process