Risk Management

What is a Risk?

Pmtips  (2010)

According to Theirm (2002), risk is a combination of the events and its consequences. Risk management standard is the result of work by team drawn from major risk management organization as mentioned by Institute of Risk Management (Theirm, 2002)

What is Risk Management?

Risk management is a central part of any organisation’s strategic management (European Federation, 2013). By identifying the risks the organizations are trying to solve them to achieve the goals to sustain the business (European Federation, 2013).

Risks faced by projects
Strategic:

• Project Abandonment
• Massive over run
• Loss of client confident

Operational:

• Inefficiency
• Unacceptable working conditions

Risk Management Process

Leadership Champions (2008)

1. Risk Planing: Adapt risk management approach by exploring the possible ways to reduce impact of threats (Pmtips , 2010).
2. Risk Identification: Predict effects on plan and document the characteristics (Pmtips , 2010).
3. Risk Analysis: Assess likelihood and impact of risks while analyzing the probability of risk occurance and numerically analyze effects of identified risks on project objectives (Leadership Champions, 2008).
4. Risk Response: Develop contingency measures and plan possible responses to risk occurance  (Pmtips , 2010).
5. Risk Action: Implement risk reduction methods to measure the effectiveness of the planing and controlling the risk impact (Leadership Champions, 2008).

Reference

European Federation (2013) Fundamentals of Risk Management. [e-book] European Federation for welding joining and cutting. http://www.ewf.be/media/documentosDocs/doc_16_ewf-644-08-fundamentals-of-risk-management.pdf.[Accessed: 08th January 2013].

Pmtips (2010) A High-Level Overview of Risk Management | Project Management Tips || Project Management, Collaboration and Knowledge Management Blog. [online] Available at: http://pmtips.net/highlevel-overview-risk-management/ [Accessed: 8 Jan 2013].

Leadership Champions (2008) Risk Management Processes. [online] Available at: http://leadershipchamps.wordpress.com/2008/06/24/risk-management-processes/ [Accessed: 8 Jan 2013].

Theirm (2002) A Risk Management Standard. [e-book] AIRMIC, ALARM, IRM . http://www.theirm.org/publications/documents/Risk_Management_Standard_030820.pdf [Accessed: 08th January 2013].