What Are The Advantages And Disadvantages Of Risk Management

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Any company in any field has already been faced risk at least for a single time. Risk management will be vary according to the situation created by the Activity. For instance, a new technology would be developed for a smartphone company like hand gestures and the schedule indicates six months for this activity, but the technical employees think that nine months closer to the truth. If the project manager is proactive, the project team will develop a contingency plan right now. They will develop solutions to the problem of time before the project due date. However, if the project manager is reactive, then the team will do nothing until the problem actually occurs. The project will approach six months deadline, many tasks will still uncompleted and the project manager will react rapidly to the crisis, causing the team to lose valuable time. Proper risk management will reduce not only the likelihood of an event occurring, but also the magnitude of its impact.

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