Why Project Risk Management?

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Why Project Risk Management?
Gwande, Member
How do risk management processes contribute to project success? I am studying project management and would like to find out how risk management processes contribute to project success. Thanks for your ideas.

Reasons for Project Risk Management
Jaap de Jonge, Editor
A good starting point is to realize that any project is inherently risky, because of certain characteristics any project has. It's in the nature of a project to be risky. Good question anyway.

Reasons for Project Risk Management
Leonardo Santos Magalhaes
Projects must produce a unique result that has never been produced in such way, so indeed the project is a risk itself.
Some projects have risk management as the core management system. Because of its nature of complexity and uncertainty, the main tasks are then those planned to reduce risks.

Is Risk Management Enough?
Gary Bacchus, Member
Risk appreciation comes first with identification. But many times I see risk registers and logs without real time mitigation. The PMO needs to be at the forefront of strategy, planning, engagement, with strong inter-connectivity with PMs.
But what happens when a change is truly transformational?
We're seeing now less and less certainty and more emerging change and complexity. Managing risk becomes managing uncertainty. It means less of project management and more change management principles to manage the future stakeholder expectation.

Mitigates Adverse Impacts
The purpose of Risk Management is to identify potential problems before they occur, to plan risk-handling activities and invoke them as needed across the life of the product or project to mitigate adverse impacts on achieving objectives.
In short,
- Risks threaten objectives.
- Internal controls manage risks.
- Internal auditing provides opinions about whether internal controls are managing risks to acceptable levels.


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Special Interest Group Leader
Jean-Michel de Jaeger, EMBA, PMP
Management Consultant

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