Wagdy AzzamPM II| Aziz company for contracting and industrial investRiyadh, Riyadh, Saudi Arabia
As per PMBOK 6th edition , Why does the strategies for overall project risks does not include escalation? Saving Changes...
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Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
I have not referenced the PMBOK lately but I am assuming that your questions relates to the estimated cost allowance for risk mitigation. The allowance for risk mitigating measures is based on an estimated probability that an event may happen and the impact of that event happening. Although the cost of the impact is in future funds and therefore could be subject to escalation, the probability of that event happening will most likely be lessened as we move forward. Additionally only the remaining part of the project would be exposed to that risk. As an example, if the risk probability is 50% at the beginning of the project, as the project nears completion the probability of occurrence and the impact may be significantly reduced. A reduced probability and impact factor would probably outweigh an inflation factor.
The cost allowance for a risk event with significant negative project impact should be updated to reflect and change in probability and impact as the project advances. Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
Not sure what the authors thought, you might ask David Hillson though.
My interpretation that overall project risk is dealt with by the project only, that's why there is a project manager and if it would be escalated, the project is killed or the PM gives up, because the PM basically says I cannot handle it.
This is different from event based risks, which are many. Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Escalation is just a specific form of transfer. Saving Changes...
