Managing Risk

Paper Summary:

This paper defines project management as a set of activities which has a defined start point and a defined end state and pursues a defined goal. Risk management is a process that involves measuring risk, assessing risk and finding ways to manage identified risk. The writer of this paper explains why the main challenge of project management is to ensure that the project achieves its defined goal. This paper discusses the various methods and strategies for identifying and managing risks as it relates to business. One method starts with the simple process of considering a project and listing everything that could be a barrier to its completion. Another method of identifying potential risk is to consider all the steps necessary to successful completion of a particular project and then determine what can prevent each step from proceeding. The writer contends and details why effective risk management is a crucial part of project management.

From the Paper:

"The next consideration is how risks can be identified. This can start with a simple process of considering a project and listing everything that could be a barrier to its completion. This can be a starting point, but may not ultimately be useful. After all, there are an unlimited number of things that can theoretically prevent a project from proceeding effectively. It is not feasible to suggest that every possible problem can be prepared for. Another way to manage risk is to consider all the steps necessary to successful completion of a project and then determine what can prevent each step from proceeding. In a complex project, this can also mean determining the steps of a project that are the most critical to a successful outcome. This focus on the key success steps associated with a project is an effective way to concentrate on the most critical problems, rather than focus on every possible potential problem. In addition, while some would say that it is better to prepare for the worst and think of every possible problem, this in itself can be a waste of resources and can reduce the amount of focus on the most important potential problems."

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