Project Risk Management Process

Abstract: Risks exist for many causes, such as incorrect management or scope definition, unexpected circumstances, and ineffective shareholder management. Managing project risk is an inevitable part of a project. As a matter of fact, project management risk can occur from almost any project process. If a possible risk of the project is not premature identified, then the project will be at a high risk to complete as per schedule, within budget and to meet the expected quality.

Key words: risk, risk management, projects, risk mitigation.

JEL: G3

Introduction

Risks are threats to project success. Risks that are both possible and probable must be identified and analyzed to fully understand what can happen, what is likely to happen, and if the

Project risk management process

Managing risks in projects

Quality and evaluation tools are used to define and prioritize risks for assessment. During the risk assessment process, risks are identified, prioritized and traced according to their importance. In the moment when project manager and organization team identifies a risk, is created a contingency plan in order to mitigate the arisen risks. After this stage, a risk journal is created to inform both the team members, as well as stakeholders, about the situation. In order to guarantee the suitable implementation of project risk management, risks need to be tracked on a daily basis by the project manager.

Risk management is an important part of project management. It growths the chances of success up to a great extent. Following are some of the benefits of developing and implementing an efficient risk management plan while working on any project.

 helps you to avoid any big disaster,

 enhances your revenues by saving your expenses,

 provides you mental satisfaction,

 ensures the successful completion of project,

 gives you competitive edge over others,

 increases the sense of responsibility and accountability,

 helps you to explore new

Each of these options requires developing a plan that is implemented and monitored for effectiveness.

A risk management plan (also known as a risk mitigation plan) for projects is an official document that describes how to deal with particular risks and what risk managing actions can be taken in order to mitigate or remove threats to the project activities and outcomes. The project risk management plan gives members of the project management team a sense of the risk managing actions they can take to identify, analyze and respond to threats around and within the project.

The project risk managing plan is intended for guiding the project management team through all the whole process of managing project risks which includes such major steps as risk identifying, risk analyzing, risk responding and risk controlling. The risk mitigation plan purpose is in providing the team with a clear understanding of the necessary actions to be taken in order to protect the project from hidden and identified threats and to utilize existing opportunities for improving project