Risk

Risk is associated with everything, even when we talk about projects. It is important to keep risk in mind when working on a project and identify them, as risk can lead to large costs, losses and project failures.

In order to identify and prevent risk in a project, it is necessary to have risk management. Risk management is a process to identify risks in a project. Several tools can be applied to reduce and prevent risks and uncertainties during a process or project.

One of the risk management tools is “Failure mode and effects analysis” (FMEA). The FMEA is a process which identify how and where the project might fail and assess the different failures in order to identify which parts are most in need of change. Furthermore, a fishbone diagram can be used by the managers to track the reasons for defects or failures in the project.

Some other risk management tools are Post-project review (PPR) and Potential problem analysis (PPA), the PPR analysis potential failures and successes of a project where the PPA determine what could go wrong in a process or development.