Risk Management

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In recent times, risk management has become one of the most important aspects of project management because of the rate of financial crisis and natural disaster in the world right now and the rate of increase in expectation from the stakeholder in an organisation. But firstly, project brings about risk management so what is project? Project can be defined as a group of people working in a unique way in a period of time to achieve a specific goal. And in achieving that project management come into place, project management is according to (PMBOK 2004) ‘The application of knowledge, skill, tools and techniques to project activities to meet the project requirement’. Project management involves estimating, planning and monitoring events that occur during the duration of a project. In cases where things have gone wrong, it is seen that risk management is highly necessary in projects these days because there are many factors that affect projects like cost estimate, performance and scheduling in this recent time of the world. In this essay, I will discuss about risk in a project, the necessities of risk management in a project, ways to solve the problem in risk management and techniques for managing a risk in a project which include risk identification, risk assessment, risk response planning, and risk control and monitoring. Risk is defined as a possibility of an occurrence in a project, which might be a negative or positive impact on a project, even in decisions made by us in our everyday life there is a certain amount of risk involved in it. For instance, walking down the staircase of our homes an unexpected incident can occur like we stumbling on the stairs which wasn’t foreseen and there are some kinds of risk that you actually kno... ... middle of paper ... ...003) Project Management: A Systems Approach to Planning, Scheduling and Controlling. 8th edition. John Wiley & Sons. New Jersey. ISBN:0471-22577-0 5. Gary L. Richardson (2010) Project Management theory and practice ISBN:978-1-4398-0993-3 6. Candle, James and Yeates Donald (2004) Project Management for Information System. 4th edition Prentice Hall ISBN 0-273-68580-5 7. Clifford F. Gray and Erik w. Larson (2003) Project Management; The managerial process. 2nd edition McGraw-Hill Higher Education ISBN:0-07-249392-5 8. Darren Dalcher and Lindsey Brodies(2007) Successful IT Project ISBN:13; 978-1-84480-6997 9. http://www.brainyquote.com [Accessed 8 January 2011] 10. http://www.risk-services.com [Accessed 11 February 2011] 11. http://www.skymark.com [Accessed 11 February 201] 12. http://www.adviceonmanagement.com [Accessed 11 February 2011].

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