Importance Of Risk Management Essay

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Risk is everywhere. From driving a car to bungee - jumping, risk is a part of the activities we choose. In a project, risks are unexpected, unintended, or accidental occasions or circumstances that can have a positive or negative effect on its success. Not all risks are bad, but almost all are seen as a threat. There are various definitions for the term ‘risk’. According to Wikipedia, risks, in general, can be defined as ‘an uncertain event or condition that, if it occurs, has an effect on at least one (project) objective’. Oxford English Dictionary defines ‘risk’ as ‘(exposure to) the possibility of loss, injury, or other adverse or unwelcome circumstance; a chance or situation involving such a possibility’. When we refer to risk in relation to occupational safety and health the most…show more content…
Effective risk management strategies allow us to identify our project’s strengths, weaknesses, opportunities and threats. By preparing for unpredicted events, we can be prepared to respond if they arise. To guarantee the project’s success, the manner of which potential risks will be dealt with should be defined clearly so that we can identify, mitigate or avoid problems when we need to do. Successful project managers know that risk management is essential. Accomplishing project goals depends a lot on planning, preparation, results and evaluation that helps achieving strategic goals. By outlining risk management processes for the project, we make success more possible by reducing and removing threats so projects can successfully fulfill its original objectives. This also allows us to deliver our project on time, on budget and with the quality results our project sponsor demands. If we don’t have risk management strategies in place, our projects get exposed to problems and become vulnerable. Good risk management strategies allow us to maximize profits and minimize expenses on activities that will not produce a return on

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