The Importance Of Risk Management In Project Management

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Risk is any unwanted event or situation that can lead to the failure of your project (Rosenau & Githens, 2011). There are different types of risks including social, political, and cultural (Perminova, Gustafsson & Wikström, 2008). Risks are inevitable in any project and can be controlled by doing risk management (Loch, DeMeyer & Pich, 2011).
Risk management basically deals with exploring, identifying, analyzing and mitigating risks that are anticipated in project implementation (Rosenau & Githens, 2011). This is an action plan that consists of various steps that should be done to ensure the removal of risk (Perminova, Gustafsson & Wikström, 2008). It is an important part of project management that when done efficiently leads to successful projects.
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Such a requirement is part of good project management practice where the key lead person is the project manager. Risk register requires that project manager plans for formal risk responses (Perminova, Gustafsson & Wikström, 2008), the symptoms and warning signs of risk (Kendrick, 2015), residual and secondary risks (Loch, DeMeyer & Pich, 2011), and time and cost contingency reserves (Rosenau & Githens, 2011).

Work Performance Information
Work performance information is the status of the scheduled activities to be performed to accomplish the project goal (Kendrick, 2015). In comparing the scheduled activities against the baseline, the project manager can easily determine which contingency plans must be implemented to bring the project back in line with the baseline budget and schedule (Perminova, Gustafsson & Wikström, 2008). The outlying fact is that risk monitoring is essential task of any person in charge of a project. Reviews of work performance information, identifies any trigger events have occurred and if correlating new risks emerge.

Performance
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Risk audits should be scheduled activities, documented in the project management plan (Rosenau & Githens, 2011). It is important to remember that risk auditors often perform risk audits. Unless the project managers constantly monitor risks in their projects, they stand a danger of running projects oblivious of the impending failure due to risks. Risk audits would also put the project managers on

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