Project risk management is an approach for formulating a high-level plan that incorporates tools and methods to define, assess and minimize negative impacts (the predicted threats) that can harm the project while identifying positive effects ( the anticipated opportunities) that could potentially enhance the project.
In a way, both risks and opportunities are a part of every project. A project risk management professional is an expert who analyses the risks and evaluates the likelihood of risk mitigations and also formulates strategies that reduce the risks and maximizes the opportunities. Project risk management experts design high-level action plans on how to handle risks and opportunities for a company.
A project risk management strategy offers the following:
Many web-publicized articles and white papers define project risk management strategy as a combination of opportunities and risk managing activities. In this context, a project risk management approach can be viewed as a structured plan consisting of two elements – Opportunities Management and Risk Management. Let’s review every aspect of the risk strategy, as follows:
When referring to concepts of project risk management technique, an opportunity is a positive outcome that can bring added value to a project by allowing progress to be achieved. Management of project resources is a collection of techniques and tools to help a project risk management professional to identify and appreciate potential changes to the project goals.
Managing project resources under a project risk management program strides through a four-stage process (identifying, assessing, organizing and managing). These four phases are carried out by following a management plan for realizing possible opportunities. Project risk management experts involve such opportunity management plans in the application of formal and informal risk management strategies (brainstorming, questionnaires, project history and experience).
Once an opportunity is detected, it should automatically be added to the list of risks because there may be additional threats arising out of the presented opportunity.
In all reality, this aspect of a project risk management plan relates to activities designed to identify, assess and minimize adverse risks. Managing threats incorporates using project risk management tools to detect risks, evaluate their characteristics, ascertain the probability of occurrence and add identified risks to the risk register of a company.
Managing risks, like managing opportunities, refers to a four-stage cycle (identifying, assessing, structuring and managing). A project risk management professional is responsible for organizing a team that will execute the implementation of risk management techniques, prepare and report on the current progress of the entire project risk management strategy for the venture.
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TRC Corporate Consulting helps you turn dynamic business challenges into growth opportunities, enabling sustainability and long-term benefits. Our expert project risk management professionals reshape the emphasis and capabilities of traditional risk management techniques.
Organizations partner with TRC to realize and execute project risk management programs to gain competitive advantage, a more reliable brand reputation and sustainable financial returns. If you have any queries related to our project risk management services, contact us now!