Why successful projects need value and riskmanagement?

Value and risk management enables organisations to succeed in the delivery of ambitious projects by defining their desired outcomes and then exercising processes that maximise value and minimise uncertainty. This applies equally to strategy and business change projects as it does to those in the built environment.

A successful outcome requires that the value to the business is maximised through the delivery of a facility that gives them the benefits they need at a price they can afford at the time when they need it and to a quality that fulfils their expectations. It requires that the outcome is clearly defined and communicated to those who deliver
it (the project team). It also requires effective delivery processes that minimise the impact of the unexpected and uncertainties.

Value management provides an effective process to maximise value in line with the owners’ and end users’ requirements, and fulfils the first of these requirements. Risk management fulfils the second requirement as part of effective project management, by providing a process for managing risk. Both processes should be applied on every significant construction project. This does not always happen. This chapter explores why this is and provides arguments for their systematic use.

Read more in: 

*Fundamental of Management "What Is Manager Do? 

*What is supervisor do? 

*Problem Solving and Decision Making 

*Approach to Risk Management  

*Planning