Purpose Of Project Risk Assessment

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Purposes of Project Risk Assessment Project risk assessment is the process whereby hazards are identified, the risks associated with the hazards are evaluated and appropriate ways are determined to eliminate the hazards. The purpose of project risk assessment is to identify potential problems or risks before they occur so that risk-handling activities may be planned and invoked as needed across the life of the project to mitigate adverse impacts on achieving the objectives. In addition, it also serves as a purpose to remove hazards or reduce the level of risks associated by adding precautions and control measures.
Potential Project Risks Every single project has its own risks, whether it is a large construction project which produces artefact, …show more content…

The Risk Assessment Matrix expresses the risk rating as the severity of risk, and it is determined as the combination of the likelihood and consequence of risk occurring. In general, the Risk Assessment Matrix consists of two elements, the first element which is likelihood, measures the frequency or probability of a risk; while the second element which is consequence, measures the impact of a risk on a specific scale, such as cost, time, quality, damage to person or assets and many more. The scales for measuring risk consequence are called risk targets. Examples for risk targets are cost increase and project delay. A risk target is any measure that expresses the consequence of risks in relevant terms for the …show more content…

Cost impact of a project is not limited to the cost of hardware, software or contractor fees. The cost of internal staff project team members will need to be accounted for, as well as any internal project management participation. Agency management also needs to plan for the additional use of internal agency staff time as internal operational funds might be used to supplement allocations.
Project Organization Risks A qualified project manager should be assigned to the project and the project manager should allocate sufficient time to manage the project. Whether internal or contractual, it is vital to the project success that the project manager has the time to manage the project. Apart from that, business owner assigned to the project should understand the responsibilities of the project. If the business owner does not have time to meet with project manager and be well informed of the project, delays could occur and the owner could be in an embarrassing position of not knowing what to do.

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