Risk management in project management

The success parameters for any project are in time completion, within a specific budget and with requisite performance (technical requirement). The main barriers in achieving these are changes that occur in the project environment. The problem multiplies with the size of the project as uncertainties in project outcome increases with size. The failure of a project can have serious consequences. This thesis reviews the literature and the development of a system for effective risk management in projects. It studies the different processes of risk management and its application on projects. The thesis shows that managing the risks and uncertainties of a project using the life cycle of a project enable high probability of project success. The project of particular interest for this thesis is New Product Development (NPD) project. It will discusses the general cycle process of NPD project, identify the potential risks at each phase of the cycle and the necessary risk actions the organisation may take.