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The Ethics of Business LeadershipFirm Opportunities

Project Risk Management

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Risk is the probability that a present decision or action can lead to losses or hazards in future.

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It is the potential of a decision under consideration to negatively impact future. The risk factor comes into play when certain vulnerabilities exist in the system, facility or resource.

Whatever we do in our everyday life, there is always a certain element of risk. For example, using new equipment or conductng a scientific experiment for the first time is inevitably risky. The factors which may contribute to the riskiness include nature of the specimen, changes that may occur during the process and the degree of caution at the personal end.

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      Risk management helps at personal and organizational level to:

  •  Quantify risks for analysis.
  • Prevent unnecessary wastage of time, money & resources
  • Promote holistic growth & development
  • Raise gains and reduce losses

Risk management as a profession, helps to identify the necessity of taking risks versus the possible cost involved in avoiding it. Furthermore, it helps to mitigate the negative consequences associated with a particular decision when leveraging the benefits. It is a strategic process of careful evaluation of alternatives with respect to associated risk factors and outcomes.

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