A Research Study On Risk Management

Risk management is a process for identifying, assessing and prioritizing risks of different kinds. Once the risks are identified, the risk manager will create a plan to minimize or eliminate the impact of negative events. A variety of strategies is available, depending on the type of risk and the type of business. There are a number of risk management standards including those developed by the Project Management Institute the International Organization for Standardization the National Institute of Science and Technology and actuarial societies. Organizations uses different strategies in proper management of future events such as risk assumption, risk avoidance,

2. Risk management should be done at all stages. The initial assessment should be made in the proposal stage then the assessment should be revised and reevaluated throughout the projects life. New risks will become apparent at different stages and other ones will change with different circumstances.

Project Managers must determine the success criteria for managing a project to identify risks that could possibly impede customer requirements. Risk Management is a disciplined, systematic process to obtain the maximum benefits associated with such a management channel. Every project needs some type of documentation related to risk management activity. This type of management may take on an informal or formal approach, but risk management is essential for every project.

Risk is a threat of destruction, injury, liability loss or any other negative incident caused by external or internal environments. Risk is unpredicted and nobody can guess it might happen in the near future. All of the projects exist risk and the project manager is responsible to identify those risk, which is a part of risk management planning process. Risk management is the procedure of distinguishing risk and reduce risk level. The risk management methodology decides the actions, strategies, instruments, and group parts and obligations regarding a particular task. A good risk management suggests control of possible future destruction and precautions for that risk. The risk management plan represents how administration will be organized and performed on the venture. As a management procedure, risk management is utilized to identify and preserve a strategic distance from the potential cost, timetable, and implementation or specialized dangers to a framework, take a proactive and organized way to deal with negative results. The risk management approach and arrangement operationalize these administration objectives.

Risk management it can be define as an uncertain future event or condition which if it happens affects the mission objective. However, risks can have a positive or negative effect and is absolutely necessary in the business process and all technology driven companies must undergo to protector

As a project manager it is important to expect and prepare for unexpected events. With risk management you can identify your projects weaknesses, strengths, and threats that may have your project in a negative aspect. Risk Analysis is important because it may help you avoid or mitigate these risks. As a project manager it is part of their responsibility to make sure that team is prepared for these “expected” risks.

According to Kendrick (2009, p. 17), roughly 75 percent of projects fail when project teams refuse to adopt some form of risk monitoring and control. Ken Black (1996), an associate professor of decision sciences, published an article listing twelve factors that contribute to the failure of projects. The article highlighted risks, as one of the factors that can negatively affect project constraints (Black, 1996). A risk, as defined by Kendrick (2009, p. 1), is an event or series of events that occur due to the level of uncertainty associated with the project outcome. If a risk occurs, it threatens the success of a project because it can halt or prolong the project’s constraints.

“Risk management provides a structured way of assessing and dealing with future uncertainty” (Cooper, Grey, & Raymond, 2005, p. 4). The main participants for the elaboration of the risk management team can include the following (PMBOK, 2008): A Project Manager, Project Team Members, Stakeholders, any employee within the business who is asked to manage the risk, and others as determined

All projects are subject to the effects of uncertainty. The uncertainty creates the need for organizations to be aware of the many different types of risk they will be challenged with for the duration of the project. To understand the level of risk the organization must have a defined process for project risk management to include their risk appetite, risk tolerance and risk thresholds. Project Risk Management is the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project. (PMI, 2013, p. 555). The PMBOK Guide lists six processes of Project Risk Management as “Plan Risk Management, Identify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses, and Control Risks” (PMI, 2013, p. 309). Risk management planning has been identified as an important management approach to dealing with uncertainty in projects, aiming to minimize threats and increase opportunities. Understanding each of these processes will give you a clear picture of the importance that risk management plays within a project.

Risks are sometimes described as “known-unknowns” (APM, 2012): events which may happen, but may not. "Risk Management is focused only on those uncertainties that have the potential to impact the achievement of one or more objectives of the organization" (Murray-Webster and Williams, 2010). This means that risk management should not address all risks, only those relevant to the project objectives.

Risk management models are not applied universally across all types of risks. Certain models are meant for certain types of risks and the project manager should use previous experience and good judgement in using the models [ [1] ]. This is one of the shortfalls is risk management models because different people can interpret the same thing differently [ [5] ].

Managing risk is an important task for any project manager. After s/he has determined what risks exist for the project and assessed their importance, s/he needs to choose a strategy for dealing with each risk if and when it comes into play. According to Swanson, the risk assessment is critical because it enables the person responsible for contingency planning to focus risk management efforts and resources in a prioritized manner only on the identified risks. The risk management process includes the risk assessment and determination of suitable technical, management, and operational security controls based on the level of threat the risk imposes (Swanson, 2001). Minimize the chances that the risk will occur, develop

A risk is an indefinite event or circumstance that, if or when it does occur it can have a positive or negative effect on the project and its outcome. Risk is an integral part of every project and every project manager should assess risks throughout the phase of the project and develop plans on how to tackle them.

To begin this paper, it is important to understand the meaning of project risk management and the various concepts that are involved in this knowledge area. The first part that companies should understand is the definition of the word risk. The term risk is defined as the potential of causing a negative effect on projects and cause delays. However,

A risk variable is a circumstance that may offer ascent to one or more project risks. A risk variable itself doesn 't make you miss an item, timetable, or asset target. In any case, it builds the odds that something may happen that will make you miss one. Utilize your project stages and also your general project plan to help you distinguish risk elements (Wiley, 2016). To oversee projects successfully as a Project Manager, you should have the capacity to perceive and oversee risk. In any case, project risk is more prominent in the following ways: