This recommended practice (RP) is intended to serve as a guideline, not a standard. As a recommended practice of AACE International, the intent of the guideline is to define the required skills and knowledge to perform decision and risk management. It serves as the foundation of the skills and knowledge of an AACE certified Decision and Risk Management Professional (DRMP) and provides an outline for its study guide.

Decision and risk management (DRM) requires knowledge ranging from analytical (e.g., statistics and modeling) to socio/psychological (e.g., risk elicitation and communication) to management (e.g. risk response planning and management). DRM is practiced within the context of all the processes and practices of total cost management (TCM). All TCM practices have elements of uncertainty and the need to make some decisions, and interfaces with all the associated disciplines working in a TCM process.