ABSTRACT
Risk Management is a means of dealing with uncertainty – identifying sources of uncertainty and the risks associated with them, and then managing those risks such that negative outcomes are minimized (or avoided altogether), and any positive outcomes are capitalized upon. The need to manage uncertainty is inherent in most projects which require formal project management. In looking at risk management and the role of the project manager it should be noted that risk management cannot be owned by one individual on a project and that all team members must be ‘risk aware’ and participate in activities to improve a project’s position, through Action Plans, which are part of the main Project Plan. The two objectives for the deployment of the discipline of risk management are:
To plan and take management action to achieve the aims of removing or reducing the likelihood and effects of risks before they occur and dealing with actual problems when they do; and
To continuously monitor potential impacts of risks, review the associated action plans, and provide and manage adequate financial and schedule contingencies for risks should they occur.
