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Project Risk - An introduction to Risk Management

Project Risk - An introduction to Risk Management

This is an edited dissertation paper that explains the project risk management process in accordance with the guidelines defined in the PMBoK.

What is Project Risk?

Risk may be defined as an event or circumstance which is perceived to have a significant impact on the project’s objectives.   Projects are the principle means by which companies move forward. Since risk elimination is not always a practical proposition, effective management becomes essential. Similarly, full advantage cannot be taken of beneficial opportunities, if these are not recognised in good time and acted upon. No project is risk free. Risks can be managed / shared / transferred / avoided They cannot be ignored. Why is Risk Management Important?Because Project Management is all about dealing with the unexpected; All Plans are ForecastsAll Forecasts are UncertainAll decisions are based upon uncertain forecastsAnd Uncertainty = Risk What do we know about Risk Management?We do it all the timeVery few do it wellEveryone does it differentlyEven fewer record what they do One can practice:
  • Risk Management
  • Crisis Management
  • Disaster Management

This paper looks at the relevant processes for formal Risk Management.

Author:- David R.V.Forrest

ADVICE: You need to be a Guild Member to view / download the articles in the Guild's Library.

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