ABSTRACT

Risk control is the third step of the risk management cycle. Its purpose is to handle risks in a manner that achieves project goals efficiently and effectively. Under traditional risk management, there are four ways of handling risk: Acceptance, adoption, avoidance and transfer. When a risk arises, project managers decide to let the risk occur by taking no action. Project managers take action to avoid one or more risks. For example, a project manager may produce a schedule to avoid the possibility of missing well-publicized critical milestones. Risk pro-action ensures that appropriate project management processes are in place to handle risks efficiently and effectively. Project managers must, for effectiveness and efficiency, plan for the immediate and distant future. Conducting a thorough risk identification and analysis that identifies the types of risks that could occur, their priority, and their impact is essential.