Managing Project Risk and Opportunities Essay

Running head: Managing Risks Managing Risks Phase 1 Discussion Board 2 Patrice Strong- Register MPM420-1004A-01 Colorado Technical University Professor Nancy Brennan October 10, 2010 Managing Risks In every team there will be different interpretations of information that is presented. This is why it is important that we meet and share our thoughts and ideas of how a project is determined, managed and executed. In the subject of risk management, we all must know what the definition of risk is and how it pertains to our business and or project.

Risk is defined as anything that is uncertain that has been defined (Barkley, 2004, p. 1). The concept is simple, yet often not looked at as a vital part of planning a project or program. Risk is any uncertainty in a plan that you can potentially control, or at least track (Barkley, 2004 p. 3), therefore we must identify them especially the critical ones which could potentially bring a program or project to a halt or cause major issues. Risk can be an opportunity as well.

By using a SWOT analysis (strengths, weaknesses, opportunities and threats), it can help us to do a risk analysis and other outputs that support identifying risks in a program or project that could help us see where we may be able to improve our techniques and in addressing our customer’s needs, which give us a more competitive edge and market share and growth. Risk management is a part of the project management processes. The nature of project management means the processes may be used throughout the project life cycle. For example executing a risk response triggers to identify the risks process to evaluate the impact (PMbok, 2008).

The process of a risk management plan is to identify the risk, analyze those risks and monitor and control those risks. The objective is to decrease the probability of a negative event and make sure that they don’t wreak havoc on a program or project. We need to be proactive in our approach to risk management. We start by creating a culture within an organization that will embrace risk management. Often time if we can get everyone on board to identifying the risks and does some strategic planning before these events occur, it will provide a more secure avenue for a successful program or project.

Project risk is a part of the overall risks and threats faced by businesses. It should not be separated, because once the overall risks of a business has been identified, it gives a basis for project risks such as technological risks, competition, and threats. It is a very important part of a program or project management plan. References Project Management Institute. (2008). A Guide To The Project Management Body of Knowledge (PMBOK Guide) (4th ed. ). Newtown Square, Pennsylvania, United States of America: Project Management Institute, Inc. Barkley, Bruce T. (2004). Project Risk Management. Penn Plaza, New York, NY: McGraw Hill.