Handbook for integrating risk analysis in the economic analysis of projects
The aim of this handbook is to support the development of a practical and operationally relevant methodological framework for the analysis of risk in project design and project economic analysis. While the Handbook is primarily targeted to Asian Development Bank staff and officials of its developing member countries, it may also be of interest to others involved in development assistance.
The Handbook is divided into five parts. Following a brief introduction, including a summary of the reasons why risk analysis may be undertaken, Part II outlines the available technical approaches to modeling risk within conventional project economic analysis. Part III reviews the practical experience of ADB and other major agencies with regard to the analysis of risk in project design. Part IV considers the implications for risk analysis of ADB’s increasing emphasis on distribution and poverty impact analysis. Part V provides practical guidance on how to apply different types of risk analysis in different situations, based on existing techniques and given the emerging nature of ADB’s operations.