Size is not the only consideration, however. Some projects or programmes are inherently complex or risky, irrespective of their overall value, and particular attention to risk  management is recommended. This might occur when projects involve the development or use of new technology, or when unusual legal or contractual arrangements are proposed. Specific risk management may also be required when there are important political, economic or financial aspects, sensitive environmental, social or safety issues, or stringent regulatory or licensing conditions to be met.

The approaches and techniques described in this book are not just for large or complex projects. They are applicable to all scales of projects, from the very large to the very small, and they will assist managers at all levels of project-related and asset-related activities. The framework for identifying, analysing and assessing risks and developing plans for dealing with them can be applied equally to smaller, simpler and routine projects and procurements, with significant benefits for the organizations involved.

Risk management provides useful inputs to the detailed activities within each of the broad life cycle stages in Figure I.1. For example, Figure I.2 shows the stages in the contracting process where a risk management approach can add value. Similar processes apply for projects and activities that are not related to the acquisition of assets. Examples include:
• IT systems upgrades and implementations;
• organizational or procedural changes;
• business relocation;
• marketing initiatives;