Risks Management : Risk Management

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Risk Management 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. Plan Risk Management Plan Risk Management starts at the earliest stage of the project and should be included in the overall project management plan. Establishing this process should be accomplished during the project launch meeting where risk management is supported from the onset by top management and understood by the entire project team. (Meredith &

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