Risk Management Plan

The whole process of planning and scheduling is to reduce risks on projects. This module will give the project manager the latest tools and techniques necessary to mange quality and risk on the project

Risk Management Plan

a. Project management strive to minimize the chances of success

  • Put your answer option here

b. Risk management strive to minimize chances of failure

  • Put your answer option here

c. Risk , uncertainty and opportunity are not closely related

  • Put your answer option here

d. Risk management is not part of managing projects

Project Risk Management


Project Risk Management is defined by the PMBOK as; ‘thesystematic process of identifying, analyzing and responding to risk throughoutthe project life cycle’. Project management and project risk management bothstrive to achieve the project’s objects-but in different ways. Where projectmanagement strives to maximize the chances of success, project risk managementstrives to minimize the chances of failure.

The purpose of this module is to provide an outline ofproject risk and opportunity, and a methodology for reducing risk to anacceptable level while keeping the entrepreneurial spirit alive to spotmarketable opportunities.

Company success is achieved by pursuing entrepreneurialopportunities to gain competitive advantage. Project and new ventures havetypically been setup to take advantage of these opportunities-to make somethingnew, or change an existing facility. Risk management has always been anintrinsic part of managing projects. And, with increasing market competition,increasing new technology and an increasing rate of change, risk management isgaining significance and importance.

A key component of making changes is makingdecisions-ideally these decisions would be based on complete information withhigh degree of certainty of the outcome. However, in the real world mostdecisions are based on incomplete information with an associated level ofuncertainty about the outcome- it is the uncertainty that leads to risk.

It can be seen that risk, uncertainty and opportunity areclosely related. When a risk occurs, with some entrepreneurial ingenuity, thiscould be turned around to be an opportunity. And, conversely when pursuing anopportunity there will be associated risk that could derail your project. (RoryBurke 2007. Project management technique)