Risk and Project Management : Report

Added on - Sep 2019

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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 moreobjectives and goals of the project. There is no-risk free project owing to the infinite number ofevents that can take place and impact the project negatively. The two major componentsassociated with risks are the probability of the event and its impact on the project because of thefact 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 ofloss 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 ifperformed efficiently. It can be considered as an action plan that ensures the removal of the riskand increases the success rate of the project. Risk management on integrating with the projectmanagement helps in ensuring the successful completion of the project and provides acompetitive edge over other projects (Pritchard, C., 2013). Therefore, the sense of accountabilityand responsibility is enhanced on its integration in the project. Finally, it helps in enhancing therevenues 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 caneither be positive or negative. Separate risk response strategies are used for the positive andnegative risk. The primary objective of the positive risk response strategy would be to maximizethe chances of positive risks and the objective of the negative risk response strategy would be tominimize the negative risks and its impacts.2
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