as response to this post 75 words if in text cite use reference
Hello class and prof.
A risk is anything that could potentially impact your project’s timeline, performance, or budget. Risks are potentialities, and in a project management context, if they become realities, they then become classified as “issues” that must be addressed. So risk management, then, is the process of identifying, categorizing, prioritizing and planning for risks before they become issues. (Stephanie Ray Feb 26, 2021)
It is important that all project management personnel receive specific training in risk management methodology. This training should cover not only risk analysis techniques but also the managerial skills needed to interpret risk assessments. Because the owner may lack the specific expertise and experience to identify all the risks of a project without assistance, it is the responsibility of project directors to ensure that all significant risks are identified by the integrated project team (IPT). The actual identification of risks may be carried out by the owner’s representatives, by contractors, and by internal and external consultants or advisors. The risk identification function should not be left to chance but should be explicitly covered in several project documents: Statement of work (SOW), Work breakdown structure (WBS), Budget, Schedule, Acquisition plan, and execution plan. (Nap.edu n.d.)
There are a number of methods in use for risk identification. Comprehensive databases of the events on past projects are very helpful; however, this knowledge frequently lies buried in people’s minds, and access to it involves brainstorming sessions by the project team or a significant subset of it. Think of the many things that can go wrong. Note them. Do the same with historical data on past projects. In addition to technical expertise and experience, personal contacts and group dynamics are keys to successful risk identification. Project team participation and face-to-face interaction are needed to encourage open communication and trust, which are essential to effective risk identification; without them, team members will be reluctant to raise their risk concerns in an open forum. While smaller, specialized groups can perform risk assessment and risk analysis, effective, ongoing risk identification requires input from the entire project team and from others outside it. Risk identification is one reason early activation of the IPT is essential to project success.
Risk can be managed through following the following process: identify the hazard, Analyze, prioritize, ownership, respond and monitor. The one I will cover is prioritize the risk levels. Not all risks are created equally. You need to evaluate the risk to know what resources you are going to assemble towards resolving it when and if it occurs. Having a large list of risks can be daunting. But you can manage this by simply categorizing risks as high, medium, or low. Now there is a horizon line, and you can see the risk in context. With this perspective, you can begin to plan for how and when you will address these risks.
Some risks are going to require immediate attention. These are the risks that can derail your project. Failure is not an option. Other risks are important, but perhaps not threatening the success of your project. You can act accordingly. Then there are those risks that have little to no impact on the overall project’s schedule and budget. Some of these low-priority risks might be important, but not enough to waste time on.