Live Chat ×
Skip to main content

(RISK-2878) Simple Risk Policy as a Utility Function

Organizations vary in their appreciation of the potential impact of the risks that could affect their achieving time and cost goals while completing the project’s scope. This paper lays out a risk analysis maturity model that allows organizations to determine: (1) where they are today on the scale from “not aware” to “advanced integrated cost-schedule risk analysis” and (2) where they want to be, what is their optimal level of risk analysis maturity. The levels of maturity are described along with their benefits and properties including tools and outputs that distinguish them from other maturity levels. [for a brief discussion of cost risk maturity see 11, p. 210].

This paper does not mandate that organizations strive to achieve full advanced cost-schedule integration methods and tools (level 5) unless that is desired. Often some projects will require more or less risk analysis maturity depending on size, complexity, type of project or other criteria.