Question

( please in your own words) explain how risk management is related with overall project management?

Answer 1

Risk management is being used by the project managers to reduce the negative impact of any potential problem that may occur during the project tenure. Risk is uncertain and can arise from various sources like financial uncertainty, legal liabilities, strategic management errors, accidents, and natural disasters.

Hence in a project risk management is an ever going process as it is a constant process of identifying potential risks in advance, analyzing them, and taking precautionary steps to reduce/curb the risk. Minimizing the deviation of the project from its projected path is very important so that the set objectives can be achieved in a specific time period. Risk management helps in minimizing the negative impact and keep the project on the right parabola so the results are achieved within the set timeframe.

By considering the potential risk beforehand and having a risk management plan in place a project manager not only saves organizations form extra expenses but also minimizes its impact on the organization's future, risk management is an integral part of project management as it allows a project manager to identify the project's strengths, weaknesses, opportunities, and threats. By planning one is ready to respond to any uncertainty that can occur in between.

Hence A risk is anything that could potentially impact your project’s timeline, performance, or budget. With the risk management plan, one can prepare for the unexpected, minimizing risks and extra costs before they happen. Risk management is just not reactive but is a part of the planning process of a project itself.