subject: Risk Management And Its Diverse Usage [print this page] When a project is set working, the finances are cleared and everything is running smoothly, the people who supervise the project are in no way relieved. Because the truth is that every project comes with a bag full of risks. These risks are associated with the projects right from the start. With time, these risks do not just vanish away from the project, in fact, as time passes these risks grow in numbers, they multiply severely and then cause extensive damage of they are not dealt with on time. Only at the time of completion or final execution do these risks tend to fade away.
Now, what is a risk? A risk is simply a factor that has the tendency or the capacity to make something go astray. If something does go astray it will cause the project to lose its potential to succeed and reach a final end point. A risk is something that stands as a hindrance in the plans path to completion. The bigger the risk is, the bigger the hindrance which will ultimately result in far bigger steps that need to be taken to remove these hindrances.
Risk management plans are an important asset since if risks are handled with care, dealt with and managed well then there is the possibility that risks will ultimately turn into something that is beneficial and more productive for the company. Such plans actually play a key role in attacking the various kinds of threats that loom around the project.
In order to effectively formulate a projects risk management plan there are a few key points that must be looked after and considered quite carefully. You should understand that such a management plan can not initiate without having some risks to evaluate in the first place. You need to evaluate the various risks involved first. You need to have a good idea of what actually could threaten the project from the very beginning. You need to consider the tangible threats; those that can be measured, calculated and then confirmed. You also need to take in account those threats that are unseen and quite truly unpredictable. Such threats are the silent threats like the human factor. You never know who and how many of your team members could go on sick leave. You must always consider alternate scenarios and think three paces ahead. All forms of businesses need a critical evaluation - an evaluation that can help them understand what they should and what they should not do.
