Due to the rapid changes in the external environment of organizations, projects of any type are subject to risks and uncertainty. If the uncertainty cannot be controlled, the risk instead, being a probability, can be anticipated, measured, and managed.
management
Description
Abstract:
Due to the rapid changes in the external environment of organizations, projects of any type are subject to risks and uncertainty. If the uncertainty cannot be controlled, the risk instead, being a probability, can be anticipated, measured, and managed. In this context, the paper focuses on a number of general aspects regarding project risk, types of risks, and project risk management. Also, the project risk management process is presented in detail, addressing four stages: risk identification, risk analysis or assessment, risk management, and risk control. The methodology approached in this paper is based on the research of literature, direct observation, and own judgment.
1. Introduction
The project is characterized as a single specific action; it consists of a
logical sequence of activities and coordinated and controlled components; it
is conducted in a methodical and progressively organized manner, with constraints of time, resources and cost, to meet the defined objectives (Croitoru,
2015).
Any business and any project have distortions, challenges, and changes due to the influence of external factors, which are continually changing or internal ones, which are due to the different changes that occur during the activity. These influences lead to the emergence of risks and uncertainty.
When carrying out projects, account must be taken of the risks that
may arise throughout them. These risks should not be ignored or hidden but
they should be treated responsibly by the project manager and his entire
team. A project manager is not able to solve every risk that appears in a project, so every person in his team has to do something about risks (Boide,
2014, p. 620).
