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A mistake may cost you dearly.
London Consultant
A definition of risk management
Risk management is defined as the identification, assessment and economic control of those risks that endanger the assets and earning capacity of a business. A risk can be tolerated if: The likelihood of its occurrence is sufficiently remote and or the consequences are not severe. If what you are facing does not fall into this catergory, perhaps we need to talk.
Why Do Projects Fail?
A project fails when the plan is not met. Failure means that a project exceeds the timeline, overspends the budget, or underperforms expectations. We will outline two reasons why a plan is not met:
The plan was too optimistic. This arises when actions and costs are forced to meet predetermined targets. Underbidding, scale-to-fit, and political matters are also common causes.
External events have an impact on the plan: Scope creep, insufficient resources, unanticipated work, and extraordinary events are some examples.
To maximise the prospects of a successful outcome for your project, you should incorporate risk management.
Benefits of Project Risk Management
Project contingency can make or break a project. Having too much contingency is uncompetitive; having too little contingency increases the chance of failure. Risk assessment—or allowing for uncertainty within estimates—helps set contingency levels, with a preferred level of risk, and gives the confidence level of outcome targets.
The first step in our project risk management approach is to identify the risks that are present in your project.
