The Risk Management Cycle Essay

560 Words 3 Pages
All projects are subject to varying levels of uncertainty and are subject to risk. Projects are established to achieve a goal and project risk management must address risks to the project management process in light of their effect on achievement of the end goal. The risk management review process must take into account the impact of identified and new risks.
Risk management extends beyond setting out systems and procedures; all risk mitigations must be actionable. Effectiveness of implementation of risk management and actionable mitigation tasks must be monitored by the steering committee and sponsor/s. Identified project risks and mitigation tasks are controlled in the Project Risk Log (PRL). Change to the PRL should adhere to the Change Management processes defined for the project.
The earlier potential risks are identified the earlier mitigation and contingency plans can be developed, which will increase the likelihood of project success. Analysing risk and managing it up front provides for: (Charity Commission, 2010)
1. Anticipation of situations and problems and building of contingency plans
2. Conduction of project management activities in proportion to the risk weighting as described in the Project Risk Log
3. Better management of stakeholder and project team expectations
4. Being prepared to take advantage of positive risks
Risk Review Process

Risk management processes need to be sufficiently flexible and responsive to ensure that new risks are addressed as they…

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