The Implementation of Risk Management

  Risk Management   Work Breakdown Structures (WBS)   Knowledge Shelf  

The very essence of doing business lies in the pursuit of opportunities. Such pursuits can never be completed with 100% of the facts and risks being known at inception. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fourth Edition defines risk as “… always in the future. Risk is an uncertain event or condition that, if it occurs, has an effect on at least one project deliverable.” Every project has a component of uncertainty from the moment it is conceived. The uncertainty can have one or more causes and one or more impacts on the scope, schedule, cost, or quality of a project. Risks can be both internal and external relative to the project and have both an impact and likelihood. Once a risk is realized, it becomes an issue. The use of risk management in a project can guide the project team in controlling the likelihood and impacts of risks.

The Purpose of Risk Management
The risk of most significance is that the project’s end-product does not meet the expectations of the sponsor or stakeholders. By adopting a risk management plan, the project team not only signals the intent to manage risk, but also demonstrates how risks will be managed. The highest amount of risk is present at the beginning of a project where there is the greatest amount of uncertainty. However, risk must be managed proactively and continuously …

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