Risk Management

Risk is an uncertain event or condition that, if it occurs, it has a positive or negative effect on a project’s objectives. Dealing with a project inherently involves risks and the challenge is to identify potential risks before they arise. Risks are determined by both the probability of occurring and the impact on the project. Risk management refers to a coordinated set of activities and methods that is used to direct an organization and to control the many risks that can affect its ability to achieve objectives. This article focuses on describing the process of dealing with risk management and providing examples of tools and techniques that can be used for each activity. There are numerous risk analysis tools and methods and they might differ from project to project. However, the steps required for risk management are the same: identifying the risks, analyse them related to probability and impact, assess and prioritize, develop plan for risk response and monitor and control risks throughout the project’s lifetime.