Managing Risk Project



Table of Contents

Decision Making1

Risk Management Strategy1

Project Planning2

Project Organization2

Project Phases3

Effects of Project Phase on Risk4

Project Appraisal4

Risk Management People4

Risk Management Organizations5

The Risk Management Process5

Guidelines to the Risk Management Process6

Communication7

The Standard Risk Management Model7

Value Management Processes8

Understanding the Project Risk9

Applying Value and Risk Management9

Iteration of the Process10

Qualitative Risk Assessment11

Cost Assessment11

Soft Systems12

Project Appraisal and Selection12

Project Evaluation13

Response to Risks13

Successful Risk Management14

References15

Managing Risk Project

Decision Making

The process of decision making reduces ambiguity and hesitation for alternatives to allow a rational choice to be made from them. The definition of decision making emphasize on the function of information gathered during the process of decision making. There are not many decisions made with complete certainty because complete information about all the alternatives is rarely possible. Therefore, each decision engages a certain sum of risk. But if there is no uncertainty then no decision is to be made. It is a fact that decisions must be made within a selected decision environment as this environment of decision making continues to expand and grow. For example, the decision making process for the managers of financial companies is extremely quick because they have less choices to made in a limited period and if they do not take decisions on time, then they can lose profits for their organization (Melton, 2007).

Risk Management Strategy

The procedure of classifying and managing risk is to enhance the prospect of achievement and decrease the chances of failure. The risk management ensures that an organization makes cost effective use of a risk framework that has a series of well-defined procedures. The plan is to support enhanced decision making through good considerations of risks and their impact. The risk management is a constant and rising method that runs all over the organization's strategy and the implementation of that strategy ensures systematically addressing of all the risks surrounding the organizations activities. For example, risk management strategy is extremely important for the organizations when they want to make product diversification because this strategy protects organization to manage their risk in an effective manner (Ciocoiu & Dobrea, 2010).

Project Planning

For the enterprise to grow and develop, different phases of project planning are essential in which recruiting best employees are helpful to make the structure of the company more strong. If the structure of the organization is not able to perform its task in an appropriate manner, then the chances of its rejection is more. When this condition starts to become risky for the organizations, then there is more pressure to reorganize their project. When such a situation becomes dangerous for the firm, the increasing pressure is exerted on reorganization. For example, almost every firm that aims to start a project has to make proper planning before launching their project. For making the project successful and less risky, different phases of the project required more attention and hard work (Dobson, 2003).

Project Organization

The project organization is the variety of organizational potentials for project management, and the crucial part of this approach is that the project is separated from ...