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bd40bc7c7a For example, a risk that is very likely to occur and would also be highly damaging to the company is one to take very seriously. No matter what the activity, there is an element of risk that must be analyzed and weighed against the potential rewards. When you are building a team to work on the project, keep in mind that not every team member will see the project through from start to finish. The aim of the Risk Management Plan is to ensure that the risk management protocol that is used on the project is commensurate with both the risks and the importance of the project to the organization. Identifying the Risks Before a project even gets started, it is essential that any potential risks are identified and a strategy for managing such risks developed. The best that can be done is to evaluate each risk that you might face, and weigh it against the potential rewards that are waiting at the end of the project. Both qualitative and quantitative analysis must be performed for each risk. Every project will have a unique set of risks based on the specific details of the work being done. One of the best ways to do this is by learning from past experience - either your own experiences, or those of the organization as a whole. It uses the probability and impact matrix (PIM) to rank and prioritize risks, and this information is placed back on the risk register.
By ensuring the whole project team are involved in the identification of risks, they will have a sense of ownership and responsibility for both the risks and associated risk response actions. Evaluating the Risks With a list in place that highlights which risks you will be taking on during the project, you can start looking closely at each of them and deciding what kind of threat they actually are. The availability of time and budget, and the need for qualitative or quantitative statements about risk and impacts, will determine which method(s) to use. Establishing this protocol early on in the project ensures that all members of the project management team are using the same methods to evaluate risks and that the risk management tasks are budgeted for in the project plans. Everything that is done in business contains some measure of risk. For example, having redundancy within your team can help to limit the damage if a team member moves on to another job partway through the work, and building the project in such a way that it can be 'paused' while waiting for more funds could prevent it from being completely wiped out by a temporary lack of funding. You will learn: Why a proactive approach to risk management is necessary. Chapter 5 - Planning and Controlling Risk Responses Having identified and assessed each risk you need to develop the options and actions to enhance opportunities and to reduce threats to the project. All project activities carry some element of risk, which are uncertainties about them that could affect the project for better or worse. Chapter 4 - Performing Risk Analysis Using the risk register each risk is now analyzed in terms of its probability and impact on the project if it were to occur.