Importance of Risk Management in Effective Project Delivery Essay

This essay critically evaluates the importance of risk management in the effective delivery of projects. It begins by defining risk management as a systematic process used to identify, evaluate, and control threats to business capital and earnings, stemming from various sources. The essay then outlines the risk management process, including identifying, analyzing, evaluating, treating, and controlling risks. It emphasizes the importance of risk management in planning for success, communicating with stakeholders, and being proactive. The essay also discusses the impact of ineffective risk management, highlighting potential legal and financial consequences. The conclusion reinforces the essential role of risk management in maintaining project operations and ensuring successful project delivery, referencing the planning, stakeholder communication, and proactive risk mitigation as vital components. It also mentions the issues that occur lack of risk management practices which can provide the adverse impact on the delivery of the projects.

Critically evaluate the
importance of Risk
Management in the
effective delivery of
projects

Table of Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Critically evaluate the importance of Risk Management in the effective delivery of projects.................3
Conclusion...................................................................................................................................................4
REFERENCES............................................................................................................................................5

INTRODUCTION
Every organization needs to prepare an effective plan for the appropriate delivery of the
projects so that business can tackle easily risk problem. To deliver the project successfully, it is
essential to focus on risk management which can help to maintain the project delivery process in
a right manner. Basically risk management is helpful to identify and evaluation of the risk and
help to coordinate, minimize & control the impact of risk on the projects and it's delivery. The
main motive of this report is to discuss about the importance of risk management in the delivery
of the specific projects.
MAIN BODY
Critically evaluate the importance of Risk Management in the effective delivery of projects
Risk management is considered as a systematic process which can help to identify,
evaluate, assess and control the threats to business capital & it's earning. Threats & risk could be
mainly stem from the wide range of sources like financial uncertainty, strategic management
error, legal liabilities & accidents & also natural disaster. Most of the Organizations are
experiencing the risk and try to remove the risk probability so that they can gain more profit
advantages (Li and Wang, 2018). For instance, Tesco project manager need to take care about all
the operations so that there is less probability of risk. Tesco project manager mainly focus on the
risk management process so that they can effectively considered and follow all the steps
systematically and reduce the chances of risk.
There are five steps are involved in the risk management process such as indentify the risk ,
through this step organization can need to identify that in which area risk factor occur and then ,
analyze the risk , in this step, manager can use some strategies which can help to analyze the risk
area in the project , evaluation of risk , in this step, project manager can rank the risk so that
manager can easily recognize the importance of risk. Treat the risk, after rank the risk, it is
necessary to prepare the specific plan to manage the risk in an appropriate manner. Control &
review the risk, after analyze the risk properly it is necessary to monitor and review the risk
factor.
Importance of risk management for delivering the project, Risk management is the aspect
which evaluates the functionality and assesses the information that helps in managing the critical
situation within the organization by which the manager can take the appropriate decision in
accordance to the specific problem. It also contribute in and stabilizing the list of internal and
external risk as this they can make the best use of alternative in order to get the better outcome.
There are various factor which and list the importance of risk management for completing a
specific project (Meredith and et. al., 2017). Planning for success, when the organization is
taking effective concentration in the waste management that contributes in the successful and
establishment of the internal and external is a risk that includes the identified risk, probability of

occurrence, potential impact and proposed actions on a specific problem. For instance, when
there is a low risk in the organization there is no impact on cost and performance of the company
another and moderate risk cause some increase in the cost and schedules. Communicating with
Stakeholders, in order to run the project in a smooth manner the effective project manager
communicate their plan to the project sponsors and the stakeholders so that the expectation of the
people can meet the funding in completing the specific task. Identification and avoiding with the
risk in advance is ensuring that the employee can respond effectively with the emerging
challenge in the organization. Be Proactive Not reactive when the organization is having the disk
management plan that allow to be proactive and take the necessary step in order to mitigate the
possible harms before they arise, in place of continuing in fighting with them.
Impact of not having effective risk management, when the companies are not
complying with all the laws and regulation whether it is related to employee competitor or the
customer. It increases the business risk and also leads to have major impact by its legal exposure.
The firm can be sued even if they are complies with the letter and the spirit law but the odds
factor in the suit's success can be diminished (Picciotto, 2020). When the company fails to
evaluate prevent and minimize the damage which is being acquired by the risk can ruin the
business completely. This could lead to the loss in the market share as the companies failing to
protect the risk of changing conditions within the organization. Business risk management
become the part of the corporate culture that influence the every position and the every decision
of the employees and employer so building a risk analysis at every level of the management can
demonstrate that the companies running at their best and ensure the risk management effectively
(Blanco-Mesa and et. al., 2019). The organization is not having the effective risk management
then they cannot analyze the impact of certain outcomes and that can leads to lack of
transparency among the employee so it is to ensure that the company is having a transparency
with the Employees in order to establish a right code of conduct in an organization (Chang and
et. al., 2019).
Conclusion
As per this report it can be concluded that risk management is essential to maintain
project operations and also helpful in delivery of the projects. This report discuss about the risk
management process and also analysed that why risk management process is essential in the
management and development of the project and it's delivery. This report also discussed about
the importance of risk management and it analysed that risk management can help to planning of
the success of the projects and most importantly communicating with the stakeholders.
Moreover, this report also determined the issues that occur lack of risk management practices
which can provide the adverse impact on the delivery of the projects.

REFERENCES
Books and Journals
Li, Y. and Wang, X., 2018. Risk assessment for public–private partnership projects: using a
fuzzy analytic hierarchical process method and expert opinion in China. Journal of Risk
Research, 21(8), pp.952-973.
Meredith, J.R. and et. al., 2017. Project management: a strategic managerial approach. John
Wiley & Sons.
Picciotto, R., 2020. Towards a ‘New Project Management’movement? An international
development perspective. International Journal of Project Management, 38(8), pp.474-
485.
Blanco-Mesa, F. and et. al., 2019. The importance of enterprise risk management in large
companies in Colombia. Technological and Economic Development of Economy, 25(4),
pp.600-633.
Chang, T.Y. and et. al., 2019. Importance of risk reassessment in patients with atrial fibrillation
in guidelines: assessing risk as a dynamic process. Canadian Journal of
Cardiology, 35(5), pp.611-618.