Project Risk Management and Project Risk Management Processes

The Risk Management is a methodology which aims to control the uncertainties that may occur in a project.The methodology started to be studied after the World War II, when large companies with diversified portfolios began to be developped and the need for insurance against the risks started to grow. Project and Risk managers must eliminate the uncertainties, in order to ensure that the project will achieve its goals. The uncertainties and the risks can be related to the duration of activities, to the absence of adequate resources, to the time and cost or other external factors, that can cause undesired effects to the project's performance. In order to manage these risks effectively and efficiently there are processes that can be implemented to deal with risks. The processes include 2 different phases:the 1st phase is the risk analysis which identifies,analyzes and prioritizes the risks of a project. The 2nd phase is the risk management which includes the development of the risk management planning, the evaluation of the progress and the reevaluation of the existing or potential risks. To enhance the effectiveness of the project risk management methodology and its processes a root cause analysis and its corrective actions can be implemented, in order to ensure that the causes of the problems during the project will not reoccur later in the project or future projects

History

Risk Management began to be studied after World War II, in order to protect individuals and companies from various losses associated with accidents