Introduction of the purpose and importance of risk management
Risk management planning is a critical and often overlooked process on every project. Allowing for the proper amount of risk planning in your project schedule can mean the difference between project success and project failure when those potential risks become real issues. The plan is only the output of the process. It details how the process will be implemented, monitored, and controlled through the life of this project. It details how the group will manage risks but doesn’t attempt to define the responses to individual risks. Risks come about for many reasons, some are internal to the project, and some are external such as but not limited to the project environment, the management process, planning process, inadequate resources, and other unforseen instances that can contribute to risk. Risks associated with the project generally concern the objectives, which turn to impact time, cost, or quality, or combination of those three things.
Risk management provides assurance that an organization can create and implement an effective plan to prevent losses or reduce the impact if the a loss occurs. A good plan includes strategies and techniques for recognizing and confronting the threats, solutions for both preventing and solving the situation and indicates financial opportunities. An effective risk management practice does not terminate risks. However, an effective and operational risk management practice demonstrates that the organization is committed to loss reduction or prevention.
The budget for risk management is included in the plan as well. The plan also describes how the risk management information will be maintained and updated, reported to project participants and documented for future reference. Roles and responsibilities are included in the document and shows what people are responsible for managing the identified risks and their responses.
The purpose of this Risk Management...