Risk management paper

Risk management paper

Risk management is defined as a procedure of identifying, analysing and responding to the risk factors involved in the life of a project. Risk management also suggests the possible future events to become proactive than reactive to control the situations that arise in the project.

Risk is the primary role of uncertainty in any company that makes the organization to manage and confidently concentrate on the future business-related decisions. Thus, risk management is the most important in an organization as it helps in future predictions on risk identification and analysis. (Craig, 2013) Risks can be from both external and internal sources like political issues, interest rates increase or decrease, information theft, non-compliance, and so on. It also ensures the high priority risks to manage cost-effectively and provides management at all levels with the required information for the project success.

Risk analysis is a tool to identify and manage risk effectively (Coleman, 2011). Risk analysis is useful while planning projects, identifying threats and then estimates the risk faced. The risk management avoids the risk which is not of any advantage to the organization, shares the risks among the teams to proceed with the present works, accept the risks and finally controls the risks in the project by many ways to reduce the impact cost-effectively.

References

Coleman, T. (2011). A Practical Guide to Risk Management. The Research Foundation of CFA Institute, pp.1 – 206.

Craig Taylor; Erik VanMarcke, eds. (2013). Acceptable Risk Processes: Lifelines and Natural Hazards. Reston, VA: ASCE, TCLEE. ISBN 9780784406236