ABSTRACT
Risk management is the systematic process of planning for, identifying, analyzing, responding to, and monitoring project risks. This activity is the means by which uncertainty is systematically identified and managed in order to increase the likelihood of meeting project objectives. These uncertainties can be related to functionality, schedule, cost, or quality variability of the end deliverable. A more technical view of this concept is that the term "risk" can be interpreted to represent an uncertain opportunity or threat. The Environmental Risk Management Authority of New Zealand is chartered by their government to foster improved risk management and they offer a real-world operational view of this process to show how the basic processes are grouped and interrelated. Formalized risk management is widely recognized in both the public and private sectors as an integral facet of effective business practice as it provides management with a deeper insight and wider perspective regarding effective management of the organization activities within its dynamic environment.
