上游充通大粤 SHANGHAI JIAO TONG UNIVERSITY Managing Risk Risk is the possibility that an unwanted circumstance will occur that can result in some loss. Risk Management involves identifying,assessing,and responding to project risks in order to minimize the likelihood and impact of the consequences of adverse events on the achievement of the project objective. With knowledge of potential risks,a contractor can: Include contingency or management reserve amounts in the bid price. Or decide to not bid on a proposed project. A project manager cannot be risk averse.Managing Risk Risk is the possibility that an unwanted circumstance will occur that can result in some loss. Risk Management involves identifying, assessing, and responding to project risks in order to minimize the likelihood and impact of the consequences of adverse events on the achievement of the project objective. With knowledge of potential risks, a contractor can: • Include contingency or management reserve amounts in the bid price. • Or decide to not bid on a proposed project. A project manager cannot be risk averse