A review of techniques for risk management in projects

Purpose – This paper aims to provide a review of techniques that support risk management in product development projects using the concurrent engineering (CE) philosophy. Design/methodology/approach – The Australia/New Zealand risk management standard AS/NZS 4360:1999 proposes a generic framework for risk management. This standard was adapted for product development projects in the CE environment. In this paper, existing techniques were reviewed for their applicability to processes in risk management; namely, techniques for establishing context, risk identification, risk assessment and treatment. Findings – Risk management is an activity within project management that is gaining importance due to current business environment with a global focus and competition. The techniques reviewed in this paper are used on an ad hoc basis currently. A more risk focused approach is likely to result in an integration of several of these techniques, resulting in an increased effectiveness of project management. Practical implications – The techniques reviewed in this paper can be used for the development of risk management tools for engineering and product development projects. Originality/value – This paper provides a gist of techniques categorized in the form that they are applicable for implementation of risk management functions in product development projects using CE philosophy.