Risk to a project is an uncertain effect which might hinder the smooth running of the entire system. It might cause a positive or negative impact either to the different objective which in turn might affect the whole project.
Project risk assessment or simply risk management can be considered as a way of foreseeing the probable risk that might arise during the course of time. This prediction will also provide us a head start on how to tackle the same with the limited resources. This system helps to identify, analyse, respond and also helps to monitor project risk.
Project risk assessment is conducted at the early stages of the project. The study has a predefined process methodology, tools and techniques which will help to maximize the probability and results of positive events. Thus minimizing the probability and consequences of adverse events as indicated and appropriate within the context of risk to the overall project objectives of cost, time, scope and quality
The basic steps for the risk assessment study can be categorized as
The study will be conducted by a team of professionals following the above mentioned methodology.
Some of the risk types identified by the project risk assesment will be,
The actual risks to be identified will be project specific. Uncertainties are the reason for the possibility of risk. The probable sources of uncertainty, which might lead the project to a risk can be broadly pointed as,
A detailed project risk assessment study will help the project engineer to overcome these causes of risk which might arise during the project life cycle.
In short, the project risk assessment will help in minimizing, monitoring and controlling the probability consequences of unfortunate events by the identification, analysis, and prioritization of the risks through coordination and economic application of resources which in turn will maximize the success of a project.