Project risk management

Project risk management is an important aspect of project management. According to the Project Management Institute's PMBOK, Risk management is one of the ten knowledge areas in which a project manager must be competent. Project risk is defined by PMI as 'an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives'.

Good Project Risk Management depends on supporting organisational factors, clear roles and responsibilities, and technical analysis skills.

Project risk management in its entirety, includes the following six process groups:^[1]

• Planning risk management
• Risk identification
• Performing qualitative risk analysis
• Performing quantitative risk analysis
• Planning risk responses
• Monitoring and controlling risks

Project Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities.

See also

• Risk management framework
• project finance

References