Stanford University's use of a risk assessment methodology to improve the management of systems development projects is discussed. After examining the concepts of hazard, peril, and risk as they relate to the system development process, three ways to assess risk are covered: size, structure, and technology. The overall objective for Stanford University is identified: to convert a general understanding of risk factors into specific, quantifiable terms that can be compared over time and against other projects. Specific risk assessment questions are listed, along with criteria for questionnaire design. It is noted that the questionnaire is used at key points in a project's system development life cycle, as well as to update the portfolio risk profile at specific times during the year. Questionnaire responses indicate the extent of hazards and perils for each project using numeric values that are converted to percentiles and composite scores for each risk area. Graphs are included to show risk assessment for a new fund-raising system, an accounting maintenance program, and a portfolio assessment for a set of systems development projects. Attention is also directed to management decisions using risk analysis. (SW)