Steps Of Effective Project Risk Management

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Project Risk Management Name Instructor Course Date Abstract Project risk management is an inevitable aspect of management in every project owing to unexpected occurrences during the lifetime of a project. This paper outlines the four crucial steps of effective project risk management comprising risk identification, risk quantification, risk response, and risk maintaining and control. Risk identification process involves identifying the various probable risks by categorizing them using various techniques. Risk quantification also employs various tools and techniques in determining the most critical unexpected events so that they are majorly focused on risk response process. To ensure that a project completes, it is…show more content…
There are typically four major steps involved in project risk management, which when followed well are helpful in managing the risks effectively in the business organization. They are risk identification, risk quantification, risk response, and risk monitoring and control (Cervone 257). The benefits of project risk management can be massive. A manager can bring about the gain of a lot of money in the handling of the various unexpected events. Project managers endeavor to reduce the impact of project threats and seize the opportunities that come about. Risk management requires that managers be proactive in assessing their projects and have contingency plans in place rather than be reactive and wait for the risk to happen to handle it then. This essay will thus elucidate on all the steps of effective project risk management to reduce the happening of an unexpected event and the respective magnitude of its impact. Risk Identification It is the creative process where those involved in the project are tasked with coming up with a list of every aspect that could go wrong. Experience from past projects can also be used in coming up with the lists of probable risks. The information is a helpful tool for the manager in understanding particular risks and expanding the thinking of the team. The
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