What do you mean by Project Risk Management?

Project risk management involves identifying, assessing, prioritizing and controlling negative, and positive, risks. With good risk management, projects can greatly improve their success, and avoid failure or identify new opportunities.

To do a project risk assessment you have to identify risks, analyze risks, determine a risk response and document the risks. Then you have to consider how to make the risk assessments part of your project management, get stakeholders involved and clarify risk owners.

There are several types of risks that need to be managed in a project. Risks can come from various sources, for example:

  • Technology
  • Supplier
  • Security
  • Schedule
  • Scope creep
  • Resources
  • Resistance to change
  • Residual risks
  • Quality
  • Regulations
  • Requirements
  • Politics
  • Infrastructure
  • Health and Safety
  • Contracts
  • Design
  • ...
risk management

According to the standard ISO 31000 "Risk management – Principles and guidelines on implementation" (Source), risk management can include identifying positive risks, i.e. opportunities. They describe a risk as the "effect of uncertainty on objectives (Source)". Effect can be a positive or negative deviation from what is expected.

Risk management is an opportunity to spot potential risks, put a procedure in place to control risks, and to monitor those risks and spot new ones as they arise.

teamsuccess risk assessment tool

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References and resources

  • ISO 31000:2018, (2018) Risk management – Guidelines, provides principles, framework and a process for managing risk. Source
  • Deloitte & Touche LLP. (2012). Risk assessment in practice. Deloitte. Source
  • Shore, D. A. (2016). What Could Go Wrong? How to Manage Risk for Successful Change Initiatives. Harvard Professional Development. Source
  • American College of Healthcare Executives. (2017). Leading a Culture of Safety: A Blueprint for Success. Source
  • PwC Risk in Review. (2017). Managing risk from the front line. PwC. Source
  • Wallis, P. (2012). Risk management, achieving the value proposition. Government Finance Review. Source
  • Park, K. (2015). Risk angles. Deloitte. Source
  • Perez, J. C. (2016). Assessing risk from vendors and other third parties is key to business success. Qualys Blog. Source
  • The Institute of Internal Auditors. (2014). Managing third-party risks. Source