Risk Management application in Projects

Risk Management application in Projects

Risk management: Dealing with uncertainties has come to be known as risk management. It is the procedure of identifying, assessing, and controlling threats to an organization’s assets and earnings. In financial management or project, risk management is the procedure of identification, analysis and acceptance or mitigation of insecurity in investment decisions.

Applies to risk management project: The systematic process of identifying, analyzing, and responding to project risk, and consists of six subprocesses and, as we shall see below, a seventh subprocess needs to be added.

Risk management planning: Deciding how to approach and plan the risk management activities for a project.

Risk identification: Determining which risks might affect the project and documenting their characteristics.

Qualitative risk analysis: Performing a qualitative analysis of risks and conditions to priorities their impacts on a project objective.

Quantitative risk analysis: Estimating the probability and consequences of risks and estimating the implications for project objectives.

Risk response planning: Developing procedures and techniques to enhance opportunities and reduce threats to the project objectives.

Risk monitoring and control: Monitoring residual risks, identifying new risks, executing risk reduction plans, and evaluating their effectiveness throughout the project life cycle.

Create and maintain a risk management data bank: A permanent record of identified risks, methods used to mitigate or resolve them, and the result of all risk management activities.