Risk Management in Projects

Running head: RISK MANAGEMENT
RISK MANAGEMENT
Name of Student
Name of University
Author’s Note

1RISK MANAGEMENT
Executive summary
Risk management is the most important step that must be taken by an organization while
undergoing a project. It saves the consumption of time, effort as well as money. The
unwanted stress on project team is reduced as well. The risk management helps in preventing
numerous problems along with making several other problems less likely. Activities of risk
management are an important task of a project manager. Risk management deals with
anticipating the risks as well as plan them in such a way that would help a project manager to
resolve it whenever it takes place. Risk management saves the consumption of time, effort as
well as money. With the help of risk management, a project transforms from being in control
of project manager to being in the control of project. Risk management includes various steps
that are required to be followed, they include planning regarding risk management, risk
identification, qualitative as well as quantitative analysis of the risks, planning of risk
response and controlling and monitoring the risk responses. This assignment discusses
regarding the ways using which risk management can be done for a specific project, it also
discusses regarding the ways by which risk can be measured as well as ranked, and these
rankings can be utilized for figuring out mitigation strategies.

2RISK MANAGEMENT
Table of Contents
Introduction................................................................................................................................3
Critical analysis of the concept of risk...................................................................................3
Risk Measurement and Risk Ranking Techniques.................................................................5
Strategy for managing risks within a project.........................................................................8
Ways to minimize project risk.............................................................................................10
Conclusion................................................................................................................................12
References................................................................................................................................13

3RISK MANAGEMENT
Introduction
Risk is simply identified as a possibility of loss. It is a probability of a situation within
a project or an adverse event that occurs unexpectedly and creates an impact on the entire
project. Risk is not the entire problem itself but it's just the precursor to a bigger threat. Risk
is the possibility of creating loss within a project that is manifested with financial loss, delay
in payment and also lag in performances (Bromiley et al. 2015). At any given point in the
project lifecycle a projected goal can never be achieved when a probability of a risk is
available within the resources that would make for the impact within the entire project. This
is the reason why the critical analysis on the entire concept of risk occurring within a project
needs to be evaluated to make sure that the concept of risk occurring within a project is made
clear. The report following the analysis would further include the techniques by which risk
can be measured and rank accordingly to make sure which risk should be taken decision
against to eliminate first. This process used also implies which race has the maximum impact
on a project and which has the least. Furthermore the strategy for managing and risk within a
project would also be employed with this critical analysis report to make sure that the
strategy for managing risk within a project clearly sets out the ways by which project risks
can be minimised are eliminated from the entire project system.
Critical analysis of the concept of risk
Risk can be defined as the possibility of any sort of loss when it comes to the context
of project management. The risks within the project can be identified to be from various
aspects of the management process in the entire project (Hopkin 2018). The risk of the
possibility of loss can occur from any aspect uncertain of the event or condition that is
occurring within the progression of a project objective. Risk creates an impact on at least one
project objective. the first and foremost mindset that a person needs to set up before starting