Risk Management Is The Organized Method

Before developing a risk management plan an analysis of risk needs to be performed. This analysis should include all aspects of the project that may be part of

Indeed, Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project. (PMBOK Guide - Fifth Edition, 2013).

The following short case will give you a good idea of how risks surface in business and project planning and what companies do about it. Consider that you are the Risk Manager as you look at this case, as it will be a good exercise for the time when you will be that Risk Manager!

Risk mitigation would allow the project manager to know the project’s strengths and weaknesses then evaluate the threats facing the project. The project manager would implement different strategies such as lowering exposure to threats or improving strengths of the project to make sure that the variance in schedule and cost is not very high when there are risk event occurrences. A risk mitigation strategy ensures that the project manager, the implementing team, and the project’s stakeholders are on the same page in the project implementation job. It also gives the project team an opportunity to address risks in advance so resolving additional issues becomes easy when the issues occur later during the implementation of the project. Moreover, the risk management strategy would fine-tune the parameters used for measuring the results of the project (Kerzner,

Risks management is an important step during the process of a project. Failing to manage a risk may result in unforeseen event happening and a project’s failure. For example, with limited budget, an unforeseen event or an accident occurs in the middle of a project and this matter has not been considered and needs a big sum of expense, then the project may be stopped because of this unexpected event. We should know it is necessary to understand how to identify risks and assumptions based on the information. After identifying risks, it is important for project managers to set contingency plans to prevent and deal with these risks when they occur. Of course, several problems may happen during considering

Risk or threat is common and found in various fields of daily life and business. This concept of risk is found in various stages of development and execution of a project. Risks in a project can mean there is a chance that the project will result in total failure, increase of project costs, and an extension in project duration which means a great deal of setbacks for the company. The process of risk management is composed of identifying, assessing, mitigating, and managing the risks of the project. It

Cooper, D.F., Grey, S., Raymond, G, & Walker, P. (2005). Project risk management guidelines. Retrieved from The University of Phoenix eBook Collection database.

Surveys of various projects under different stage of progress through reports and interaction with teams associated with project shall be used to collect information. Initial assessment identifies about twenty major risk factors likely to occurrence in majority of construction projects. This project proceeds further its study into the likely impacts of the risk factors on the project objectives. Risk management may be described as “a systematic way of looking at areas of risk and consciously determining how each should be treated. It is a management tool that aims at identifying sources of risk and uncertainty, determining their impact, and developing appropriate management responses. A systematic process of risk management has been divided into risk classification, risk identification, risk analysis and risk response, where risk response has been further divided into four actions, i.e. retention, reduction, transfer and avoidance. An effective risk management method can help to understand not only what kinds of risks are faced, but also how to manage these risks in different phases of a project. Owing to its increasing importance, risk management has been recognized as a necessity in most industries today, and a set of techniques have been developed to control the influences brought by potential risks compared with many other industries, the construction industry is subject to more risks due to the unique

Project Risk Management – identifies potential risks (good and bad) that can affect the objectives of the project.

In order to perform project risk management effectively, the organization or the department must know the meaning of the risk clearly. With regards to a project, the management must focus on the potential effects on the objectives of the project, for example, cost and time (Loosemore, Raftery and Reilly, 2006). Risk is a vulnerability that really matters; it can influence the objectives of the project

Thus, risk management plans help minimize the impact of technical risks in a project. There are several risk management paradigms that project managers can use to manage these risks. In software risk management, Barry Boehm’s risk management paradigm consisted of two sub-processes—risk assessment and risk control (Wallmüller, pp. 5-6). When assessing the risk, project managers need to identify, analyze and prioritize their risks with quantitative measurements, i.e. probability percentages or 1-5 scale. After this sub-process, the manager implements the risk control process where the IT managers can create risk management plans specifying risk reduction measures. In addition to these measures, the plan should include risk resolution and monitoring controls to be used on the project. An example of this paradigm is found on this website,

Create a list of all possible risks via brainstorming, risk profiling and problem identification. Marco risks fist, then micro risks.

This assignment is included in the 2014 session of the Risk Management module of the MSc in Project Management course at University of Aberdeen. The main purpose of the assignment is to demonstrate my understanding of the issues involved in Risk Management and how they are applied in my current Project environment. The assignment is split in to two questions as detailed below.

Risk is considered a negative factor because of its down side exposure to cost overruns, time splippages, technical performance shortfalls, unrealised benefits, retaliation from affected parties that may result in substantial business costs. Project risk management involves two processes: evaluation of sources of risk before project commencement, managing risk during project execution. OBJECTIVES OF THE STUDY 1.

Risk identification, focuses on identifying which risks will affect a project, by looking at the project plan, the work breakdown structure, the project charter and other project related documents (PMBOK, 2008). Broad risk categories are human resources, technology changes, quality and performance issues, customers, vendors, management, funding, political, legal, market forces and environmental issues (PMBOK, 2008). Risk identification involves forward and creative thinking by project stakeholders (Hilson, 2003). Risk identification, should be done on a continuous basis and project team members and stakeholders should look for new issues that may affect the success of the project (Brewer & Dittman,