Question

Identify and explain the key processes required for effective project risk management

The processes are:

1. Methodology

2. Roles and responsibilities

3. Budget

4. Timing

5. Risk categories

6. Definitions of probability and impact

7. Stakeholder tolerance

8. Reporting

9. Tracking

Answer 1

Answer:

Key processes for project risk management:

-Methodology:

Methodology or the techniques used in the project is the main challenge to avoid risks.If the methodology is used as per planned risk can be reduced.techniques vary from project to project and it should be correctly implemented as per the project requirements

-Budget:

Budget play a main role in project risk management.Project costs are estimated before the start of project.If any risks occurs during the process then correct actions must be taken and the it may exceed the estimated costs.So budget planning should consider some amount for risk management while budgeting

-Risk categories:

Risks may be occur during the project management right from the start to end.It should be handled properly to minimize the risks.Risks may be very intense and may cause severe damage or may be less intense if it is handled properly at the early stage.Risks may occur due to internal or external sources.Sometimes risks can be unpredictable

-Reporting:

Project stages should be reported correctly.At each stage it should be checked whether the project is implemented as per the plan and if any deviation occurs then it should be reported to avoid risks

-Tracking:

Projects should be tracked continuously for assesing the risks thay may occur.If they are assesed and monitored correctly then risks may be reduced