EXECUTIVE SUMMARYProject Management involves a well knit execution of a preordained plan to achieve the preset goals and objectives of an errand. However, no single task is free from risk and menace of environment whether internal or external, for which apposite risk assessment procedure must be followed. This paper deals with the proper understanding of the concept of project management and its relation with its key component feature of risk management and analysis. A further evaluation of different kinds of risks faced in real life situation is also conducted. INTRODUCTIONProject Management is the organization of resources and teams linked with a specific project or task so as to gain optimum utilization of resources and manpower, to achieve project goals at a pre determined time within the stipulated financial restraints of the project.
Almost all of us at some time or the other have designed or planned projects including various information and data to schedule work but an important factor involving risk assessment needs to be thoroughly analyzed in order to mitigate the risk and manage uncertainty related to a future threat in any form.
Project management is used as a tactical tool by the firm for the execution of project. They serve as an indispensable aid to respond to the dynamic business environment for the development of new products and services (Wessels, 2007). To co-ordinate the project and risk management together, various tools, techniques and models could be applied depending upon the situation and expertise imparted by the project board, manager and varied stakeholders. However, in a real life situation the main objective of applying risk management to any project is to reduce different risks such as environmental, technological, human, political, legal risks etc, in relation to a pre selected area of work. SIGNIFICANCE OF PROJECT RISK MANAGEMENTThe success of a project to a very large extent depends on the accuracy of the estimation of risk factors and means of mitigation of uncertain events.
The project risk is an unpredictable and uncertain condition which may result in a positive or negative consequence, on the other hand project risk management is a process which identifies analysis and retorts to the uncertain conditions, thereby maximizing the chances of positive outcome and reducing the range of negative or adverse occurrences and upshots in future.
The project risk management is an imperative tool in enhancing the capability and efficiency of an organization, in application of the organization's absolute risk management processes and obtaining proficient results at times of scheduling events, cost effectiveness and tapping the potential opportunities. The internal proceeding of an organization involves activities in a project risk management process, right from the commencement at the initial phase of the project and continual improvements throughout the execution of the project.
A proper coordination of the project risk management with other management functions such as planning, directing, staffing etc augments the entire process. All project stakeholders have their individual interests in the project which gives a new silhouette to the project (The basics of project risk management, 2004).