What Is Risk Management

One of the most beneficial tools for ensuring a successful project is risk management.

The PMBOK defines risk management as "processes concerned with identifying, analyzing, and responding to project risk."

Risks can be categorized as follows:

■ Known risks — risks whose existence and effect are known (e.g., knowing you could get a $100 ticket for driving your car past the inspection date)

■ Unknown known — risks whose existence is known whose effect is not (e.g., driving away from an officer of the law who is trying to enforce the late inspection sticker)

■ Unknown unknowns — risks of which there is no awareness at the present time of their existence and effect (e.g., not remembering to inspect your car and driving it past the inspection date)

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

Get My Free Ebook

Post a comment