Projects take place in real life and, as we all know, uncertainty is the only constant in life.
Project management is a try to control the uncertainty around the project, note that control does not mean avoid risks and uncertainty, which is not possible, the only chance is to understand, assess and manage them through Project Risk Management discipline.
This approach is something (almost) all project managers already apply to their projects, adding buffer to schedule, cost and resources as well as being cautious when reporting to senior management.
The Project Risk Management is an approach to structure to above explained while improving results and making it more predictable.
According to PMI's Practice Standard for Project Risk Management, there are six processes involved:
- Plan risk management
- Identify risks
- Perform qualitative risk analysis
- Perform quantitative risk analysis
- Plan risk responses
- Monitor and control risks
which will be covered in this blog shortly
Notes taken during my study of "Practice standard for Project Risk Management" from PMI