Risk management
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Risk management is the process of identifying, evaluating, and responding to project risks. The goal is to minimize the probability and impact of risks on project objectives. Risk management is proactive by preparing for possible adverse future events rather than just reacting to them. Successful risk management results in satisfied customers, decreased costs, improved communication, and fulfillment of business objectives.
Risk management
- 1. Risk Management within the projects Adelina Maxim
- 2. Risk Management Introduction Project Risk - Definitions Project risk is a uncertain event, that, if it occurs, has a negative effect on a project objective. Risk probability is the likelihood that a risk will occur. Risk consequences (impact) is the effect on project objectives if the risk event occurs. Risk trigger is an indication that a risk has occurred or is about to occur. Risk management is the process of identifying, evaluating and responding to project risk. The goal of risk management is to minimize the probability and impact pf projects risks to project objectives.
- 3. Risk Management Introduction The Goal of Risk Management Risk management is pro-active, i.e. it is an advanced preparation for possible adverse future events, rather than responding as they happen. Forms and Opportunity and Risk Management Reactive: Incurred losses (target deviations) are identified, analyzed and as mush as possible are corrected. (e.g insurances) Active : Early, systematically identification, evaluation and controlling of risk carrying activities of a stock corporation . (Change to act with efficient measures to improve or avoid highly expected problem situation)
- 4. Risk Management - Definition Definition: A (project) risk is a pottential loss of a aimed/ defined (project) target. Unacceptable risk: Identified risks which demonstrate a " danger of product" have to be classified as red independent from probability evaluation. if no alternative of the elimination of the risk can be found, the project has to be canceled. Classification: A risk (potential loss) is classified by a combination of the kind or category (optional), the probability (OCCURENCE) and its consequence (SEVERITY/ IMPACT)
- 5. Risk Management – Objectives/ Results Objectives of project Risk Management: Early prediction and anticipation of risks Early implementation of preventive action Systematic controlling of risks Confidence in planning (functionality-time-cost-quality) Adequate involvement of the management Results: Satisfied customers Decrease of nonconformance costs improved int/ext communication about project risk Fulfillment of business objectives Securing of company profit in the future
- 6. Risk Management Introduction Integrating Risk With Other Project Management Functions PROJECT MANAGEMENT INTEGRATION PROJECT HUMAN SCOPE Feasibility Life Cycle RESOURCES Availibility Productivity PROJECT RISK Milestones Cost TIME QUALITY Requirements Objectives (Project Schedule) COST
- 7. Risk Management – Risk Structure