The paper “ Strategic Considerations for Project Risk Management” is a thoughtful example of the literature review on management. Project risk management has become an integral part of managers who strive to realize a successful project. When the proper procedure is followed, the process can help the management team mitigate against both expected and unexpected risks. Many established projects have been said to exceed the estimated budget, lag behind the planned time of completion, or even miss essential performance targets because of poor planning and anticipation of risks. Datta and Mukerjee (2001pp.
45– 57) explain that for project managers to have extensive and successful project completion, a great extent on the identification of possible risks forms a formidable step in achieving success. Before embarking on key strategic considerations, risk management theories, and evaluation of the project environment later in the report, various definitions of terms are needed. A myriad of risk and risk management definitions have been put in place to relate it with projects. However, research by scholars such as Faulkender, (2005 p. 932) shows that there are no standard definitions that exist to constitute a risk in relation to projects.
In the business industry, for instance, the risk is often regarded as the presence of potential or real hurdles or opportunities that partly or wholly influence the growth of business RAMP (1998). Other schools of thought have it that risk is any factor that has the potential of interfering with the successful establishment, running, and completion of any project. Dias and Ioannou (1995) gave a conclusive remark that risks can occur in two different dimensions. There could be what they called ‘ pure risks’ which they explained occur in the project when it experiences financial loss with no possibility of gaining.
On the other hand, they talked of ‘ speculative risks’ which they explain involve a situation a project has both gain and loss of finances. In my view, risk management should mean the established processes and methodologies that are used towards effective mitigation of the risks and even potential threats to project goals.
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