Project Risk Management

What is Risk?

• A dictionary definition of risk is “the possibility of loss or injury” 
• Project risk involves understanding potential problems that might occur on the project and how they might impede project success 
• Risk management is like a form of insurance; it is an investment

The Importance of Project Risk Management:

• Project risk management is the art and science of identifying, assigning, and responding to risk throughout the life of a project and in the best interests of meeting project objectives. 
• Risk management is often overlooked on projects, but it can help improve project success by helping to select good projects, determining project scope, and developing realistic estimates. 
• Study has shown how risk management is neglected, especially on IT projects.
• This study suggests risk management important to improve project success and prevent runaway project.

What is Project Risk Management (PRM)?

PRM goal: to minimize potential risks while maximizing potential opportunities. Major processes include:

1. Risk management planning 
2. Risk identification 
3. Risk analysis 
4. Risk response planning Risk monitoring and control

Download also:

• Financial risk management
• How to write a Risk Assessment
• Risk Register Template for Excel
• Positive vs. Negative Risks on Projects
• Risk Management Plan Template Document
• Risk Management, Monitoring and Project Control
• Risk Analysis and Management Plan Excel template

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