Write An Essay On Risk Management

Regardless of the type of project being initiated, planned and implemented, building a culture of risk management is indispensable for the successful completion of the project.

When the manager of project carried out its work plan should take into consideration the possible risks that may occur within the project. The risk is the possibility that occurs a problem within a project and that may cause some change within the same (Heldman, 2011). It should be noted that not all risks are bad since they can be potential opportunities to make some changes that will improve the overall status of the project. In the same way a risk not taken into account in time can create one problem in the project and can completely change the final performance of the project. The project manager can take several elements to identify the risks. Some elements and documents that can be used to identify risks are: search internal risks of the project, such as resources

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

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

Today’s society has become a world of disconnected, unpredictable happenings and challenging events. (Yoder, With this plan in hand, a Risk Plan can help foster a firm understanding of and methodology to risk, and how it affects the entire organization which can lead to more successful projects and business models when put into place. A Risk Management Plan will help provide a structure for identifying risks and can stop complications from occurring that can impend the accomplishments of the project.

Risk mitigation is a critical function of every project manager. A well-developed risk management process “attempts to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented” (Gray & Larson, 2006, p. 1). Risk mitigation begins with project planning. Based on previous experiences, lessons learned, schedule and budget constraints of the assigned project, the project team can identify all the risks, analyze each risk in terms of the severity of the impact, the likelihood of the occurrence, and the degree to which the risk can be controlled. Although a direct relationship between the amount of risk in a project and the opportunity for increased rewards exists, successful businesses take every

Risk management is a systematic and analytical process that considers the potential of a threat that could endanger an asset, individual, or function. The principles of risk management use an approach that includes three elements; threat assessment, vulnerability assessment, and

Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities. (Lecture notes)Risk Management is also described as 'all the things you need to do to make the future sufficiently certain'. (The NZ Society for Risk Management, 2001)

Risk acceptance: Every enterprise has to have a level of risk that it will accept otherwise it is impossible to do business. Risk represents both an opportunity to make profit and the potential to make losses. What is important to the organization is to manage its risks so as to balance the opportunities against the potential losses for the overall good of the business.

Many project mangers, when first introduced to risk management, feel that there is something “macho” about undertaking high risk projects “without a net” and that formal risk management is a sign of weakness. Secretly, I guess that we all identify somewhat with Indiana Jones as he plunges from disaster to disaster just surviving by good luck and sheer guts. The good news is that if you

Risk management deals with the detection, assessment and avoidance methods, to cut down the adverse effects of risk on the organizations. There are different kinds of risk management techniques like risk avoidance, loss control, risk retention, risk transfer. Depending on the type of project’s involvement one can have several different risk management models to consider. "If you don 't know for sure what will happen, but you know the odds, that is risky. If you don 't even know the odds, that is uncertainty." (Frank Knight, 1921).

America’s former president, Theodore Roosevelt, said, “Risk is like fire: If controlled it will help you; if uncontrolled it will rise up and destroy you.” This comparison of fire and risk remains true for political means but also the everyday operations of any company. A company is confronted with decisions demanding the assessment of risk every day. Enterprise risk management is a framework for handling the assessment of risk that companies may encounter. The enterprise risk management process is a formula for employees and managers to follow to help manage risk. Due to the involvement of employees and managers to complete the enterprise risk management framework there is also important key organizational behavior themes that influence the effectiveness of the framework. Trevor Levine, a highly regarded risk management and process improvement consultant, said, “Risk management is about the people and processes and not about models and technology.” This statement emphasizes the importance of the people and their interactions rather than the formulaic aspect of enterprise risk management which is often the only aspect of the framework that is given attention. There are organizational behavior themes present and necessary in the enterprise risk management framework that allow for the framework to be effectively and positively applied.

One well accepted description of risk management is the following: risk management is a systematic approach to setting the best course of action under uncertainty by identifying, assessing, understanding, acting on and communicating risk issues. In order to apply risk management effectively, it is vital that a risk management culture be developed. The risk management culture supports the overall vision, mission and objectives of an organization. Limits and boundaries are established and communicated concerning what are acceptable risk practices and outcomes. Since risk management is directed at uncertainty related to future events and outcomes, it is

Risk Management Strategies seek to ensure that all goes according to plan and project objectives are achieved.