Risk Management in Project Management - Definition, Process, Benefits and Limits

Running head: RISK MANAGEMENT
RISK MANAGEMENT
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Table of Contents
Project Management...................................................................................................................3
Importance of Project Management...........................................................................................3
Project Life Cycle......................................................................................................................4
Initiation Phase.......................................................................................................................4
Planning Phase.......................................................................................................................4
Implementation phase............................................................................................................4
Closing phase.........................................................................................................................5
Project organization...................................................................................................................5
Risk Management.......................................................................................................................5
Risk Definition.......................................................................................................................5
Concepts of Risk Management..............................................................................................6
Benefits of Risk Management................................................................................................6
Limits of Risk Management...................................................................................................6
Risk Management in Construction Projects...........................................................................7
Risk Management Process.........................................................................................................8
Risk Identification..................................................................................................................8
Risk Assessment.....................................................................................................................8
Risk Response........................................................................................................................8
Monitoring..............................................................................................................................9
References................................................................................................................................10

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Project Management
Project specifically refers to the organization formed by the people that is specifically
dedicated towards a particular purpose. The projects in general consists of large, unique,
expensive as well as undertakings that involve high amount of risks that needs to be
accomplished within a specific date, containing a specific sum of money along with many of
the performances including expected levels. Particularly, a project needs to have the inclusion
of a set of well-defined objectives as well as sufficient resources that is needed to perform all
of the necessary tasks (Kerzner, 2017). Maintaining all of the respective tasks, along with the
proper handling of the existing resources is commonly referred to as the procedure related to
Project Management.
Importance of Project Management
The procecesses followed to have a systematic approach towards the management of
project have been discussed below (Schwalbe, 2015). These are,
 Strategic Alignment- management of project is particularly important as it puts
forward the assurance that what shall be delivered along with what is right as well the
deliverance of the real value against the existing opportunities of the business.
 Leadership- the procedures related to project management is considered to be
important since it brings the specific leadership as well as the direction towards this
specific project.
 Clarity of objectives- management of project is considered to be an essential part
since it puts forward the assurance that there is the existence of a proper plan aimed at
the proper execution of the strategically related goals.

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 Realistic Planning for Project- methods of project management is specifically
important because it again put forward the assurance related to the expectation that
are being set around along with what can actually be delivered and by what time.
Project Life Cycle
Initiation Phase
During this phase, which is commonly referred to as the initiation phase, the objective
related to the project or might as well as the need of the particular project is identified. This
can specifically relate to any problem or an opportunity related to the business. The most
appropriate response is the need for the documentation within the business case along with
the solutions that are recommended (Volkov and Kuzina, 2016). In addition to this, within
this phase, a specific study for the feasibility is necessarily conducted in order to investigate
all the options that need to be considered to complete this specific project.
Planning Phase
After the initiation phase to the cycle of project management specifically refers to as
the planning phase, in which the solution to the project further undergoes development in a
much detailed procedure as well as the steps that need to be undertaken to the objectives of
the project that are being planned. This steps puts forward the measures that need to be
undertaken in order to meet all of the primary objectives that is placed forward by the project
plan.
Implementation phase
This is the third phase of the PLC which is namely referred to as the implantation or
the phase of execution. During this phase, the project plan that has been put forward is
brought to motion along with the work that needs to be performed for the project is taken
forward. However, it is important for the maintenance of control as well as the