Adaptive Project Risk Management

Abstract

IT projects tend to be associated with over-budget and late deliveries. In this paper, we describe a method for improving project management based on (a) a thorough analysis of risks affecting activities in a project plan, i.e., the root factors leading to cost and time overruns, and (b) an optimization of the resources allocated to each activity in the project plan in order to maximize the probability of completing on time and within-budget. One key feature of our method is its capability to adapt and learn the risk factors affecting activities during the course of the project, which enables project managers to dynamically reallocate resources to ensure a better outcome given the updated risk profile.