Combined Effect

Taking the product of opportunity/risk and amount at stake, as shown on the next page, we find:

• At the outset of the project life span, the risk of a wrong decision on account of insufficient data is probably high

  • But the cost to fix it is small so the exposure is low
• At the end of the life span, the amount at stake is high

  • But most of the risks should now be history, so the exposure is also low
• Somewhere about the middle of the production phases

  • The exposure is highest of all
  • Which typically gives rise to a lot of stress at this time

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