Risk Mitigation In Risk Management

Risk Mitigation

After project risk is assessed and identified, the project team works on a risk mitigation plan that aims to decrease the impact of any unpredicted event to occur. The various ways project team alleviate risks includes:

• Risk transfer

• Risk allocation

• Risk reduction

• Risk avoidance

These techniques work out to be an operative tool in reducing individual risks and project’s risk profile. Thus, the plan restores the approach of risk mitigation for every recognised risk events and particular actions that the project management team might take in order to eliminate or reduce risks (Phillips, 2009).

Example: Analysis of Project Risk in Equipment Delivery

A team of project management evaluated the risk for some essential

In phenomenological study of project managers, one major reason described by Alison Mobey and David Parkwr was the lower understanding of benefits and tools of a structure project risks analysis (Parker & Mobey, 2004). The lack of understanding for formal tools of risk management was observed as the barrier for implementing risk management programs. More over the management style and personality of project managers plays an important role into level of risk preparation. Some proactive project managers have the ability to develop elaborative risk management programs. However, some managers act to be more confident and reactive in their capability for handling an unexpected situation that might take place. Others are risk averse and they try to have optimistic approach rather than considering risk or even avoid for taking risk where there is a

The strategy to avoid risk and allowing somebody in value chain for managing them is not favourable for safeguarding the project’s aim. It has been claimed that highly complex projects need additional consideration to risk management method. As for practising, better support and more advanced tools are present in large projects from risk management consultants. For smaller projects, it is often seen that risk management tool is additional time consuming task (Cooper & Walker, 2004). Procedures and systems which can be handled easily are essential drivers for more efficient and effective risk