Reported by Jyrki Kontio and Reidar Conradi
The risk management working group and project management working group started their work in this joint session. The purpose of this joint session was (i) to see whether the groups should be merged or work separately and (ii) discuss the definitions and relationships between project management and risk management.
Project management was defined as an organizational function that plans and executes projects. Project management (as an organizational function) contains several activities, such as planning, monitoring, controlling, resource allocation, estimating, and task assignment. These different activities may employ different technologies, such as cost and schedule estimation, use of PERT charts, metrics databases - and risk management.
While we defined project management as an organizational function, we defined risk management as a technology, i.e., a set of methods, techniques and tools that can be used for managing risks. Risk was defined as "any action that occurs and has a major impact on performance, cost and/or schedule". The initial, and somewhat confusing, overlap of the terms projects management and risk management was thus easier to grasp.
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Updated 06-Mar-96 by Jyrki Kontio