"Risk Management" is the art and science of thinking about what could go wrong, and what should be done to mitigate those risks in a cost-effective manner.
A Risk Management Plan is a document prepared by a project manager to foresee risks, to estimate the effectiveness, and to create response plans to mitigate them. It also consists of the risk assessment matrix.
| “There are known knowns; there are things we know that we know. There are known unknowns; that is to say, there are things that we now know we don’t know. But there are also unknown unknowns; there are things we do not know we don’t know. ” - United States Secretary of Defense Donald Rumsfeld |
Risk Definition
A risk is a potential problem, a situation that, if it materializes, may adversely affect the project. Risks that materialize are no longer risks, they are problems. All projects have risks, and all risks are ultimately handled:
- Some disappear
- Some develop into problems that demand attention
- A few escalate into crises that destroy projects
The goal of risk management is to ensure that risks never fall into the third category.
| “If you don't attack the risks, the risks will attack you!” - Unknown author |
No comments:
Post a Comment