Managing Risk
Risk Management Process
Risk Defined:
- An uncertain event or condition that if it occurs, has a positive or negative effect on project objectives.
- No amount of planning can overcome or control risk.
Risk Management Defined:
An attempt to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented.
- What can go wrong (risk event)
- How to minimize the risk event’s impact (consequences)
- What can be done before an event occurs (anticipation)
- What to do when an event occurs (contingency plans)
Benefits of Risk Management
- A proactive rather than reactive approach
- Reduces surprises and negative consequences
- Prepares the project manager to take appropriate action
- Provides better control over the future
- Improves chances of reaching project objectives on time, within budget, and of meeting required performance.