THE MATHEMATICAL MODEL OF PROJECT RISK RESPONSES IN PROJECT RISK MANAGEMENT

Project risk is an uncertain event that causes positive or negative effects on the project objectives in relation to the cost, time, quality and so on to complete the project. Project risk management is the set of processes of identifying, analyzing and responding to project risks. For example, the project risk management includes the process of eliminating the project risks from the project to complete any activities in the project by the specified day. In terms of not only the risk but also the time, many researches have been done. Especially, as for the time, there are many researches on CPM and PERT, which use mathematical techniques. However, few researchers discuss the effectiveness of project risk responses to deal with project risks for making a success of the project. In this paper, we propose a new mathematical model of the project risk responses. And, with our proposing model, we show how to calculate the effectiveness of project risk responses quantitatively. Moreover, we can decide quantitatively which project risk response should be executed by the consequences of the above calculation.