Project Risk Management : Project Management Essay

1609 Words Dec 26th, 2016 7 Pages
There are many examples of projects that have been altered by issues that have occurred and the successes or failures in the responses that project managers countered with to deal with the situation. Project risk management is a critical component of the project planning process, as well as the overall lifecycle of an undertaking. Risks must be continually assessed and deliberated in order to determine the best course of action for the project and the organization as a whole. The risk management process must be completed throughout the lifecycle of the project with the purpose of identifying, analyzing, and determining a proper response that adheres to the strategic goals of the organization.
Risk Management
As with many areas of business, there are inherent risks within every practice or activity that is embark upon. The process of identifying, planning, and controlling risks is an essential task that should be completed in every aspect of the project. Once the potential risks have been categorized, a project manager must develop a response plan to maximize the benefits of positive risks, while decreasing the impacts and likelihood of the negative ones (PMI, 2013). “Risk management is the process that allows project managers to balance the operational and economic costs of protective measures to achieve project success” (Vaidyanathan, 2013, p. 249). The process of risk management is to recognize issues that are most likely to happen and develop a response that will best…

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