Chapter 8 Managing Risk

Risk always existent in every action we do or take in our live. Risk need to be accounted for when a project manager laydown the project plan. What is a risk, and how project manger can identify risks?

Risk is an uncertain event that if it occurs can jeopardize accomplishing the project objective.

The way risk can be identify in two different ways. First, customer need to identified any kind of risks they believe can jeopardize their project, and they need to document those risks in the project charter, by doing that would give the contractor a chance to evaluate the project appropriately so, would not be an surprise issue in the future. Second way is to identify the risks, contractor need to identify any risk they believe might occur in the proposal.

Project manager also should assign an expert team player that can be able to identifying potential risks could occur during the project that would negatively impact accomplishing the project objective.

Assessing risks it is highly important for a project manager because will let manager to prioritize which risks need to be worked on and how much of threat can happened from each of these risks based on the team member report, who been assigned to rate these risks.

Project manager need to be always aware of the risks would happened, and have to have a plan risk response to this risks because if he/she can prevent or reduce potential risk would avoid losing money or time can be used on different part of the project.