Ways to deal with Risk - Risk analysis and management

Discussion

• Prajakta Pandit   -Posted on 05 Nov 15
  What is Risk?
  
  - Risk is the future uncertain events with a probability of occurrence and a potential for loss.
  
  - Risks are identified, classified and managed before actual execution of program. These risks are classified in different categories, such as
  
    - Schedule Risk
    - Budget Risk
    - Operational Risk
    - Technical Risk
    - Programmatic Risk
  
  - Risk is a possibility, not a certainty.
  
  - The following ways are deals with a risk :
  
    - Mitigate
    - Contingency
    - Transfer
    - Ignore
  
  Mitigate : Mitigate against a risk is probably the most commonly mitigation of risk used under the risk management technique. It is also the easiest way to understand and implement.
  
  Transfer : Transference is a risk management strategy that is not used very often and tends to be more common in projects where there are several parties.
  
  Ignore : You can also change your plans completely to ignore the risk. This is a good strategy when a risk has a potentially large impact on your project.
  
  Contingency : It is an estimation of the financial resources needed to cover all identified project risk in an optimum manner.
  
  

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