Understanding project risk
What is this about and why is it important?
In Part 1 we discussed the role of project managers and concluded that whilst there are many things that project managers do, there are two basic reasons why we need them. Firstly, projects are complex. They require planning effective and efficient ways to deliver them, and need ongoing co-ordination and management. Secondly, projects are exposed to risk. We cannot just plan uncertainty away. Risk must be identified, assessed and dealt with. This is the arena of risk management.
It is risk that makes projects challenging and to a large extent interesting. It takes skilled project management and experience to deal fully with risk, and risk management is an essential element ...