The Risks in Project Management

Abstract

Risk management is a vital activity that should be undertaken by every organization in a project being undertaken. Risk management ensures that there are no challenges faced by an organization in the implementation process of a project. There are different forms of projects undertaken by an organization as a way of coping with the new challenges facing the industry within which it operates. Every business organization has an understanding of the nature of business environment within which it operates. Risk managers are people determined to ensure that the challenges facing business organization in their strife to implement projects are solved long before they affect the operations of the organization. The success of an organization in managing risks is dependent on the ability of the risk managers to have adequate tools and resources that will facilitate the risk management process. A risk manager should have an understanding of the different forms of risks that are associated with the different forms of projects being undertaken in the organization. Risk management should thus be done effectively by the risk managers who have adequate skills and knowledge on how to cope with risks. In addition, every business organization is determined to ensure that the number of risks facing its operations is highly reduced.

Introduction

Risk management is the process through which an organization identifies and evaluates the risks that may be associated with its different operations and determining ways of dealing with such risks. For most organizations, the risk is always in the form of financial losses that are associated with the business operations. An organization has to identify the risk that is likely to be associated with a particular project, assess its effects and prioritize the ways of dealing with the risks. Every business organization is determined to make large amounts of profits, a process that can only be facilitated by managing the challenges that may face the organization in its operations. In addition, every business organization has a set target for the outcome of its operations after a given period of time (Poitras, 2002). As a result, managing risks is not an option for the business organization as this is the main contributor to an organization's success. The organizations that have remained successful in their different operations are those that have managed to take care of the risks that affect the operations. The main reason why businesses fail is the lack of proper risk management measures. The paper is a report on risk management and why every organization should be determined to manage its risks.

Findings

Most organizations have risk management systems which not only identify the possible risks but also quantify them. In addition, the risk management