Risk management - 3 Ways to view risk management
3 Ways to view risk management
Risk in project management can be viewed in several ways.
First
Risk management is the reason for project management. In any project there will be activities.
Those activities will finish at a specific time (we hope). However, we know that most (more than we wish) activities don’t finish on time.
After the event we know the delay. The aim is to try to assess the risk prior to the activity and hence better manage any potential delays in the project.
In this system risk takes a much higher profile. The project management is risk driven.
Second
This is more realistic. Risk assessment, in some form, is needed throughout the project management. In practice, the project team may not have the necessary experience and external expertise is often needed. Here risk management is better integrated.
Third
Risk can be seen as a section of the overall project management activity. Here the risk management supports the project management.
This can result in the risk management becoming distant and fragmented.
On the one hand the Risk Management Process may be carried out by one of the Project Team. Depending on the size of the project and the expertise of the individual. This may or may not be appropriate.
The Risk Management Process may be organised by a separate team.
It will be important that the Risk Management Process is not seen as an addition to the Project Management [see ‘The Complete Project Management package’] and [see 'The Complete Project Management plus PRINCE2'] process which then becomes isolated.