Scribd
Upload
44 views2 pages

The Importanceof Risk Managementin Projects

This document discusses the importance of risk management in projects. It states that risk management is both a strategy and process that involves identifying, analyzing, and responding to risk factors during a project's lifecycle in order to decrease the probability and impact of risks and maintain project stability. The document notes that every project involves risks that could threaten its goals, objectives or deliverables. It emphasizes that risks must be identified, managed, and addressed throughout the project in order to increase the chances of success. Risk management is an integral part of project management that helps prepare for risks through identification, avoidance, mitigation, and contingency planning.

Uploaded by

Addisalem Chane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
44 views2 pages

The Importanceof Risk Managementin Projects

This document discusses the importance of risk management in projects. It states that risk management is both a strategy and process that involves identifying, analyzing, and responding to risk factors during a project's lifecycle in order to decrease the probability and impact of risks and maintain project stability. The document notes that every project involves risks that could threaten its goals, objectives or deliverables. It emphasizes that risks must be identified, managed, and addressed throughout the project in order to increase the chances of success. Risk management is an integral part of project management that helps prepare for risks through identification, avoidance, mitigation, and contingency planning.

Uploaded by

Addisalem Chane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

net/publication/286480708

The importance of risk management in projects

Article · July 2015

CITATIONS READS

10 3,307

1 author:

Ana-Maria Dinu
Universitatea Crestina "Dimitrie Cantemir"
20 PUBLICATIONS 24 CITATIONS

SEE PROFILE

All content following this page was uploaded by Ana-Maria Dinu on 16 March 2023.

The user has requested enhancement of the downloaded file.


The Importance of Risk Management in Projects

Ana-Maria DINU
“Dimitrie Cantemir” Christian University,
Faculty of International Busines and Economics, Bucharest, Romania
e-mail: [email protected]

Abstract
Risks exist for many causes, such as incorrect management or scope definition, unexpected
circumstances, and ineffective shareholder management. Managing project risk is an inevitable part
of a project. As a matter of fact, project management risk can occur from almost any project process.
If a possible risk of the project is not premature identified, then the project will be at a high risk to
complete as per schedule, within budget and to meet the expected quality.

Keywords: risk, risk management, projects, risk mitigation.


J.E.L. Classification: G3

1. Introduction

Risks are the threats of the project success. Risks that are both possible and probable must be
identified and analyzed to fully understand what can happen, what is likely to happen, and if the worst
should occur, what would be the result? This is the purpose and essence of project risk management.
Risk management is both a strategy and a process.
Risk management is the process of identifying, analyzing and responding to risk factors during
the life of a project and in the best interests of its objectives. Suitable risk management will decrease
not only the probability of an event occurring, but also the degree of its impact.
Risk management plays a key part in maintaining project stability and efficiency during the
project life cycle. It proactively addresses possible obstacles that may arise and deter project success
and block the project team from achieving its goals. Project risk can be anything that threatens or
limits the goals, objectives or deliverables of a project. Project risk can be present in all projects and
may have one or more causes and it occurs, one or more impacts and this is the reason why project
risks must be identified, managed and addressed throughout the project in order for the project to be
successful.
Every project and any related activities are surrounded by risks. Each risk involves two major
concerns:
- the probability of occurrence and
- the impact that results if the risk occurs.
The main risk involved with risk management is realizing, at the right time, that the risk exists.
We cannot avoid or overcome risks every time, but we can prepare for them. The strategy to prepare
for a risk is to identify it and then plan for avoidance, mitigation, and contingencies. This makes risk
management an integral part of project management.

162

View publication stats

You might also like