Importance Of Project Risk Management Project Management

Kevin Sanchez 07/30/2015 COSC 6390 Professor Yun Wan The Importance of Project Risk Management Project management has become a really important aspect that companies have started to take advantage to have success in their projects. Within project management, there are ten areas that are specific to different parts of a project, such as communications, time, scope, and cost. This paper will focus specifically on one, known as project risk management. The reason why this area was chosen is because this area focuses on the risks that can occur outside and within a project, and it is important for everyone to understand how they are able to use project risk management in an effective way, one example being how they can use the proper amount of resources and be able to save money that they can use on other future projects. This paper will begin by going over the definition of project risk management and what is involved. After that, the paper will present a scenario that a company was able to implement risk management after they were encountering problems, and at the end, I will pr esent my own thoughts on project risk management. To begin this paper, it is important to understand the meaning of project risk management and the various concepts that are involved in this knowledge area. The first part that companies should understand is the definition of the word risk. The term risk is defined as the potential of causing a negative effect on projects and cause delays. However,Show MoreRelatedis3110 project1391 Words   |  6 PagesProject Project: Risk Management Plan Purpose This project provides an opportunity to apply the competencies gained in the units of this course to develop a risk management plan for a specific business problem related to an organization’s identification of an outdated plan. 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