risk management: risk is volatility of the all input factors which will influence the project output(result)

risk management is the balance of risk, effort, and cost

manage, mitigation, hedge, diversifications

identify risk: analysis measure interpretation 

management 

strategy

risk framework

sensitivity analysis    probability analysis, and Value at Risk  

level of risk:

strategic     long term    

tactical       medium term

operational    day to day

risk management

mitigation: reduce risk by using control procedure

hedge: take action to ensure a certain outcome

Diversify: build up portfolio

chapter outline:

1. theoritical and rationale of management of risk    both business and financial risk

2. access expodure to business and fanaceial risk

3. develop aframework     comparing and contrasting the following strategies: mitigation , hedging and diverdifying

4. establish capital investment and risk management ystems  

5. understand  application of probability sensitivity analysis and monte carlo similation appraisal

6. project value of risk