Risk Management

Risk management is the process of the recognition, evaluation and controlling uncertainty or threats to an organization's capital, investment decisions and earnings.

The main purpose of the risk management is to give surety that uncertainty will not create obstacles in the way of reaching business goals.

Effective risk management strategies allow you to do the SWOT analysis of your project and make you alter for the unexpected events;

For a successful project, you need to define how to handle potential risks as it will provide you a way to recognize and mitigate problems at the time of requirement. Winning project managers are familiar with risk management’s importance, because they know that a project’s goals achievement relies on planning, research, results and assessment which contribute most to reach the strategic goals.

Risk management plans provide a catalogue of internal and external risks that consists of the recognized risks, potential influence and planned actions and probability of occurrence. Low risk events typically have a slight or no influence on cost, performance or schedule. Although moderate risks become the reason of an increase in budget, interruption of schedule or degradation of productivity. While high risk events cause a big increase in the cost, disturbance of the schedule or devaluing of performance.

This unit offers an outstanding introduction to the risk management along with its objectives. It typically focuses on the risk management process and evaluates the benefits of the risk management approach in depth.

Along with an exploration of the history of risk management and its key concepts, the elements of risk are also covered. Learn how to determine and manage uncertainty and its relationship to risk and discover the classification of risk.