Project Risk Management: Definition and Importance

 

Project Risk Management: Definition and Importance

                 

 Photo Credit: ITtoolkit.com

William S. Burroughs said “There is no intensity of love or feeling that does not involve the risk of crippling hurt. It is a duty to take this risk, to love and feel without defense or reserve.” 

Risk is everywhere and always been part of our life. In love, there is risk of breaking up. In school, there is a risk of failure and venturing into a business, there is a risk of financial losses. Implementing government programs cannot escape risks on financial constraints, human resources, politics, climate change, mobility, limited time frame and many others. 

Project risk management had been defined as the process of identifying potential risks and devising strategy to manage the risks. Strategic risks management plan should be in placed to control potential risks that may affect the overall project's outcome.

Strategic Management Plan is anchored on the principle “Better Prepared than Sorry”. Project Managers with good foresight of the future are crucial to achieve an effective risk management plan. Overall, risks cannot be avoided but a well-prepared managers can turn risks into an opportunity.