Project Risk Management Essay

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Abstract

Risk Management is a standout amongst the most essential process of project management.

History had demonstrated that risk management is the basic concern to the Project Manager. The

fundamental aim of the risk management is to diminish the probability of project failure. Each and

every project irrespective how big or small, technical or non-technical, corporate or social etc., is

vulnerable to risks. If these risks are unmanaged and uncontrolled, may lead to project failure. It is

extremely impossible that a project manager manages the non-transferable risks, and complexities

of task management without definite procedure. Hence in each project’s life cycle, risks are ought

to be recognized and alleviated with some created
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Increases the revenues by controlling and reducing the expenses.

3. Aid the organization in exploring various methods for successful completion of
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Ensure that the company has a competitive edge over others.

5. Ensures the smooth running of the projects without any hurdles.

General approach for Project Risk Management - Four Phase approach:

According to R. Max Wideman, this simplest form of the project risk management

implemented is four phase approach. The four phases are:

Phase-1: Identification: This phase mainly consists of identifying the potential risks which may

impact the project’s success. These risks can be categorized as high-probability/high-impact, low-

probability/high-impact, high-probability/low-impact, low-probability/low-impact. The risks with

medium and high impacts or the combination of two or more risks which poses greater threats on

the project should be greatly considered and should not be overlooked. This can be done by “brain-

storming” type of workshop between the project team and considering the expert judgement.

Phase-2: Assessment: After identifying the potential risks of the project, the next step is to assess

the risks, determining their ranking or status of the risk, in terms of type, impact and probability.

This assessment may be a simple subjective assessment or in-depth

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