A Research Study On Risk Management

1800 Words Nov 18th, 2014 8 Pages
1. Executive Summary
A risk is any event which will have a positive or negative impact on the outcome of a project or phase. It may be caused due to several factors and if it occurs can lead to several types of impacts. Every project undertaken has some risk associated with it. Through risk management, we are able to track and keep a close watch on those events that can impact a project outcome.
Risk management takes place continuously throughout the life of the project and can be classified into identification, analysis and monitor and control phases.
These processes are restructured as we move through a project and identify new risks along the way. Risk management’s main objective is to decrease the chance of adverse occurrences during a project and cushion the impact if it does occur. However, if a positive event or opportunity occurs, it should be exploited.
Risk identification generally begins before project initiation and the risk count goes up as the project moves closer to maturity. When risks are identified, they are evaluated to determine the probability of occurrence and their impact on project schedule and scope. Once these two values are determined, they are prioritized.
Two critical issues need to be addressed as part of documenting risks. The first is risk mitigation which involves steps taken to decrease the probability of occurrence of risk. Risk mitigation actions have a cost associated with them. Therefore, it is critical to determine the probability of…
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