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Risk and project managementProject managementNameSubmitted toDate1
Risk and project managementRisk in project managementThe risk can be considered as the possibility of injury or loss. In terms of project management, project risk can be defined as any uncertain condition or event which affects one or more objectives and goals of the project. There is no-risk free project owing to the infinite number of events that can take place and impact the project negatively. The two major components associated with risks are the probability of the event and its impact on the project because of the fact that the risk is proportional to the degree of extent of both these components (Kerzner, H., 2013). The probability represents the likelihood of occurrence of the risk whereas the impact of loss can be seen as materialization of the risk. Inter-relation between risk management and project managementRisk management is a vital part of project management as it ensures the success of the project if performed efficiently. It can be considered as an action plan that ensures the removal of the risk and increases the success rate of the project. Risk management on integrating with the project management helps in ensuring the successful completion of the project and provides a competitive edge over other projects (Pritchard, C., 2013). Therefore, the sense of accountability and responsibility is enhanced on its integration in the project. Finally, it helps in enhancing the revenues of the company by saving on the additional expenses. Difference between risk and uncertaintyRisk can be considered as the unplanned event which affects the objectives of the project. It can either be positive or negative. Separate risk response strategies are used for the positive and negative risk. The primary objective of the positive risk response strategy would be to maximize the chances of positive risks and the objective of the negative risk response strategy would be to minimize the negative risks and its impacts. 2
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