APM releases updated project risk management guide
The Association for Project Management (APM), a chartered membership organisation dedicated to the project profession, has unveiled the third edition of its Project Risk Analysis and Management Guide, a resource designed to equip project professionals with advanced strategies for managing uncertainty within the built environment. This new edition builds upon the insights of its predecessor, aiming to address the evolving complexities of today’s project landscape.
Released recently, the updated guide encompasses a wide range of contemporary methodologies and tools, integrating aspects such as data analytics, decision-making psychology, and agile methodologies, along with sector-specific risk management techniques. This makes the guide suitable for both experienced experts and new entrants in the field of risk management.
Jackie Martin, director of education and lifelong learning at APM, emphasised the significance of the guide in the current project environment, stating: “Project uncertainty is no longer an occasional challenge – it’s a constant reality. From geopolitical shifts to economic instability and rapid technological advancements, today’s projects must be built on resilience and risk intelligence.” She also highlighted that the guide provides “data-driven strategies, cognitive bias mitigation techniques and sector-specific methodologies to help them stay ahead of emerging risks,” viewing it as a comprehensive roadmap for successful project management.
The updated guide notably expands its coverage of Quantitative Risk Analysis (QRA) with a focus on analytics, artificial intelligence-driven risk forecasting, and Monte Carlo simulations. It also offers fresh insights into managing VUCA (Volatility, Uncertainty, Complexity, Ambiguity) risks, particularly in global project environments. Furthermore, it delves into cognitive biases that affect risk decision-making, equipping professionals with techniques to enhance their judgment and forecasting abilities.
Sector-specific strategies are included for industries such as nuclear, aviation, infrastructure, and oil and gas, alongside agile and iterative risk management approaches tailored for modern project delivery demands. To reinforce organisational risk cultures, the guide introduces enhanced risk governance and maturity models, providing a framework to assess and strengthen risk practices.
The guide represents a timely resource in light of past events such as the Carillion collapse in January 2018, a significant incident within the UK construction sector that serves as a cautionary tale about the vulnerabilities in project risk management. Carillion entered liquidation with liabilities close to £7 billion, despite projecting strength previously. The company's ambitious expansion through acquisitions, which included problematic ventures like the purchase of Eaga, alongside a failure to adequately address pension deficits, exemplified a lack of coherent strategy.
As the construction sector faces increasing complexities driven by technological advancements and global collaboration, professionals are urged to enhance their risk management framework. The third edition of the Project Risk Analysis and Management Guide offers a well-rounded set of tools and insights, co-authored by experts from diverse industries such as infrastructure, finance, defence, and energy, and aligning with international standards such as ISO 31000:2018 and PMI's PMBoK.
The guide is available in both print and digital formats, facilitating access for professionals seeking to improve their understanding and application of risk management strategies in their projects.