Organizations may be able to avoid a large number of problems if they use systematic risk management procedures and techniques early in projects. Risk management based on intuition and individual initiative alone is seldom effective and rarely consistent. When risk management methods are used, they are often simplistic and users have little confidence in the results of their risk analysis results. Many current risk management methods are based on quantification of risks for analysis and users are rarely able to provide accurate enough estimates for probability and loss for the analysis results to be reliable. On the other hand, the table based approaches are often biased and too coarse for risk prioritization.
Risks have different implications to different stakeholders.
Few existing methods provide support for dealing with these different stakeholders and their expectations. Each risk may affect a project in more than one way. Many current risk management methods are perceived as complex or too costly to use. A risk management method should be easy to use and require a limited amount of time to produce results, otherwise it will not be used. Given the increasing interest in risk management in the industry, we believe that for risk management methods to be applied more widely, they will need to address the above issues.