An integrated approach for risk response development in project planning

The risk response development phase is a major phase in the project risk ma nagement process. We present a model that integrates project work contents, risk events, and risk reduction actions and their effects into a comprehen sive framework. The model allows the representation of the overlapping effe cts of multiple risk reduction actions and of the impacts of secondary risk events, and supports the evaluation of the total risk exposure of the proj ect under various combinations of risk reduction actions. The model can be treated with optimisation techniques in order to generate the most cost-eff ective combination of risk reduction actions. In this work we describe the model, outline a solution procedure and illustrate its application with an example taken from the software industry.