Risk Management in Projects

Submitted by: Submitted by

Views: 165

Words: 3059

Pages: 13

Category: Business and Industry

Date Submitted: 05/23/2014 12:56 AM

Report This Essay


What Is Risk Management?

Risk Management is the process of identifying, analyzing and responding to risk factors throughout the life of a project and in the best interests of its objectives. Proper risk management implies control of possible future events and is proactive rather than reactive. Proper risk management will reduce not only the likelihood of an event occurring, but also the magnitude of its impact.

Risks can be mainly divided between two types, negative impact risk and positive impact risk. Not all the time would project managers be facing negative impact risks as there are positive impact risks too. Positive risk can include; some events (like finding an easier way to do an activity) or conditions (like lower prices for certain materials) can help your project! When this happens, we call it an opportunity but it’s still handled just like a risk.

Once the risk has been identified, project managers need to come up with a mitigation plan or any other solution to counter attack the risk.

Why do Risk Management?

The purpose of risk management is to:

• Identify possible risks.

• Reduce or allocate risks.

• Provide a rational basis for better decision making in regards to all risks.

• Plan.

Assessing and managing risks is the best weapon you have against project catastrophes. By evaluating your plan for potential problems and developing strategies to address them, you'll improve your chances of a successful, if not perfect, project.

Additionally, continuous risk management will:

• Ensure that high priority risks are aggressively managed and that all risks are cost-effectively managed throughout the project.

• Provide management at all levels with the information required to make informed decisions on issues critical to project success.

If you don't actively attack risks, they will actively attack you!!

Various sources of risk include:

• Project Management sources

 Top management not...

Related Essays

The Role Of Risk Management In Project Management
THE ROLE OF RISK MANAGEMENT IN PROJECT MANAGEMENT Risk Risk is an uncertain event or a set of circumstances whose occurrence will have an impact on
Project Risk Management - Holyrood Project
3. What is project management 4.2 Successful project management 4.3 Risk management in projects 4. Project Scope 5.4 Cost management
Final - Project And Program Risk Management
mandate Risk Management? a) Discuss Risk Process and Practices. Project Managers must determine the success criteria for managing a project to identify risks
Managing Risks In Overseas Projects
environment; the key for managing these types of projects is using a dual risk management undertaken; managing risks in both project locations, integrating off shore