ABSTRACT
The Project Management Institute’s Project Management Body of Knowledge® guide divides risk management into six categories: plan risk management, risk identification, qualitative analysis, quantitative analysis, response planning, and monitoring and controlling risks. Qualitative risk analysis looks at a risk using some sort of qualification scale. The scale applies to both impact and likelihood. One of the ways that risk can be mitigated is to transfer the risk to someone else. Insurance is one of the most popular ways to transfer risk. “The very nature of project work is one laden with risk, and the primary mission of each project manager should be to reduce, transfer, avoid, or otherwise lessen the impact of risk in a manner consistent with the achievement of project expectations.” Earned value management is used as a tool to discover variance in budgets and schedules to warn a project manager about a potential risk to a project.
