Get Prince2 Risk Management

Purpose. For that reason, the Risk Management Approach is one of the most important planning documents in the PRINCE2 project management system. It describes how risk will be managed, including the specific processes, procedures, techniques, standards, and responsibilities to be applied.

The Risk cause: This describes the source of the risk. The Risk events: This describes the area of uncertainty in terms of the threat or the opportunity. The Risk effect: which basically impacts the risk that would have on the project objectives should the risk materialize.

The risk response planning involves determining ways to reduce or eliminate any threats to the project, and also the opportunities to increase their impact. Project managers should work to eliminate the threats before they occur. Similarly, the project managers should work to ensure that opportunities occur.

PRINCE2 defines 'risk' as something that could become either an issue or an opportunity. So risk can be both positive and negative for a project. It also helps understand the full impact of risk. This extends beyond the project, to show how it can effect long-term business goals.

The PMBOK® Guide describes risk as, An uncertain event or condition, that if it occurs, has a positive or negative effect on a project's objective. The key element of this definition is that the effect of the uncertainty, if it occurs, may be positive or negative on the objectives of the planned endeavour.

Share. Definition: Risk management is the process of identifying risk, assessing risk, and taking steps to reduce risk to an acceptable level [1]. The risk management approach determines the processes, techniques, tools, and team roles and responsibilities for a specific project.

The risk management process consists of three parts: risk assessment and analysis, risk evaluation and risk treatment.

The purpose of Risk theme is to identify, assess and control uncertainty and, as a result, improve the ability of the project to succeed. As shown in the image, Risks are identified throughout the project, which makes it a continual activity.

Widely, risks can be classified into three types: Business Risk, Non-Business Risk, and Financial Risk.

A risk management strategy provides a structured and coherent approach to identifying, assessing and managing risk. It builds in a process for regularly updating and reviewing the assessment based on new developments or actions taken.