Get flash to fully experience Pearltrees
Risk Management is simply defined as identifying, analyzing and managing the uncertainties in a project -both positive (opportunities) and negative (threats). The benefits of risk management are instrumental to a project’s success. By proactively addressing uncertainties, in combination with a strong project management program, problems within the project can decrease by as much as 60 or 70 %. The International Organization for Standardization identifies the following principles of risk management.
Tools & Templates
The 5 Whys is an iterative question-asking technique used to explore the cause-and-effect relationships underlying a particular problem. [ 1 ] The primary goal of the technique is to determine the root cause of a defect or problem. (The "5" in the name derives from an empirical observation on the number of iterations typically required to resolve the problem.) [ edit ] Example
The benefits of risk management in projects are huge. You can gain a lot of money if you deal with uncertain project events in a proactive manner. The result will be that you minimise the impact of project threats and seize the opportunities that occur. This allows you to deliver your project on time, on budget and with the quality results your project sponsor demands. Also your team members will be much happier if they do not enter a "fire fighting" mode needed to repair the failures that could have been prevented.
The Practice Standard for Project Risk Management provides a benchmark for the project management profession that defines the aspects of Project Risk Management that are recognized as good practice on most projects most of the time. The Practice Standard for Project Risk Management covers risk management as it is applied to single projects only. It does not cover risk in programs or portfolios. This practice standard is consistent with A Guide to the Project Management Body of Knowledge ( PMBOK® Guide 4th Edition ) and is aligned with other PMI practice standards. Different projects, organizations and situations require a variety of approaches to risk management and there are several specific ways to conduct risk management that are in agreement with principles of Project Risk Management as presented in this practice standard.