Risk Management

If you plan to take the exam, be prepared for questions that assume you have leadership experience in projects with high risks. If not, buckle up; you may be in for a bumpy ride!

According to Dinu, C. (2011). author of a risk management PMI conference paper, project failure is reduced by 90% with proper risk management. Only one-third of the world’s projects are successful (The Standish Group, 1995, p. 2). It is said that over 60% of projects spend more money than what was budgeted and miss countless deadlines and planned completion dates. Utilizing proper risk management practices, tools, and techniques will help address and minimize these problems.

Risk management is proactive and continuous. It focuses on the what-ifs. It is a process of identifying, analyzing, prioritizing, and responding to uncertainties before they occur. Because life happens, this process is critical to your project’s success. Risk management assists companies to thrive in the competitive market by keeping calamities away and taking advantage of opportunities. Like other project management processes, the level of project management is determined by the size and complexity of your project but should always be included in your project management plan.