Risk management in project management.

The general definition of a risk is an uncertain event that may occur if it occurs
Negative impact on project objectives. Including management
Identifying risk factors
Analyze and respond to these factors as an important part of the life cycle. Effective risk management means complete control of results.
The future is proactive rather than reactive; That is, anticipate the danger and take action before it occurs
Take appropriate steps to avoid and control it. Therefore, it provides effective management
Hazards have the ability to reduce the occurrence and impact of risks. Risk Management
task in project management.

The risks are categorized as follows:

  1.  Operational risk: risk of loss as a result of improper execution of work, or
    User system failure or external risks. Example of failure handling
    Conflicting or conflicting priorities, insufficient resources or lack of work
    Appropriate training of workers etc.
  2. Risk scheduling: When project tasks are not handled properly, the project plan is compromised
    fact. Risks primarily affect the project and ultimately the economics of the project
    completely and may lead to the failure of the project.
  3. Budget risk: miscalculation of the budget or scaling up of the project
    Budget risk/unexpected cost. This risk may lead to
    Project deliveries are delayed and sometimes not completely closed.
  4.  Business risk: unavailability or delay of contracts or purchase orders
    Receive appropriate input about business risks from clients or business analysts.
  5. Technology environmental risks: These are the risks associated with each company’s operating environment
    of service providers and clients. For example, changing the environment can lead to
    Production is always at risk.
  6.  Information security risks: Information security risks such as confidentiality
    Customer personal data and its integrity.
  7. Risks in the plan: These are the external risks that go beyond the limits
    the work. These external events may be insufficient funds or changes
    Customer product strategy or government changes, etc.

Suspicion of danger is the most important characteristic of danger, and you may not be sure of it
Whether the event is likely to occur, and you may not be sure
If there are consequences. So the probability and outcome of an event have two components
They describe the extent of the risk. When all risk management processes follow the basic steps
one more time .These five risk management steps combine to provide a simple process

Effective risk management:

  • Step one: identify the risks. You and your team identify the risks that may affect
    your project or its results. You can use a variety of methods
    Expose the potential risks of the project.
  • The second step: risk analysis. Once you identify the risks, you can determine the probability of each risk
    risks and their consequences; Helps understand the nature of risks and their potential impact on objectives
    The project and its objectives.
  • The third step: assessing or categorizing the risks. Assessment and classification of risks through identification
    The magnitude of the risk and knowing the probability and outcome. This is how you make decisions
    Regarding whether the risks are acceptable or serious.
  • Step 4: Address the risks. This is also called a response plan
    Go on an adventure. In this step, you will assess the highest degree of risk and location
    A plan to address these risks or modify them to achieve acceptable levels of risk.
  •  Step 5: Monitor and review risks; So taking the project risk register
    You use it to monitor, track and review risks.

Once the risks are identified, the company takes appropriate measures to protect its assets
and its characteristics. The most common type of risk management tactic is avoidance, so
The company strives to remove some of the risks by eliminating their causes,
Mitigation, i.e. reducing the expected financial value associated with risks, through
Minimize the likelihood of the risk occurring and accept that in some cases you may have to
Companies should take risks. This option is possible if you develop a contingency entity
Mitigating the impact of risks when they occur.
Organizations can save money and protect their future by taking the right steps
Methods of implementing risk management plans and forecasting various risks or events
In addition, strong corporate governance principles can do just that
Focus on risk management to help companies achieve their goals.

Other important benefits of risk management are:

* Create a safe work environment for all employees and customers.
* Increasing the stability of business operations while reducing legal liability.
* Prevent accidents that harm the company and the environment.
* Protect all persons and assets involved from potential harm.
*Assist in identifying the organization’s insurance needs in order to provide for them
Unnecessary installments.
So the world around us is basically a place with a lot of dangers, so
Our businesses face many risks that can affect their survival
and its growth. Therefore, it is important to understand the basics of risk management and how to do it.
Use it to help mitigate the impact of risks on business entities.

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