Talk:Risk management

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Contributors: Bogdan Dragotoiu, Cristina Sima, Maria Alexandra Baescu
Contributors: Bogdan Dragotoiu, Cristina Sima, Maria Alexandra Baescu
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== Definitions ==
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The first question to be asked on this topic is: "What is a '''Risk'''?". Briefly and commonly known a "Risk" is:
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- The possibility of suffering a harm or lost.
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- An element, factor or way that includes unknown dangers.
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- An event that could happen and reduces the chance of success.
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In a Project management approach, it can be consider that: "A risk is '''PROBLEM WAITING TO HAPPEN'''".
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To better understand and indentify a risk, it is indicated to look for some  particular  properties of it, like:
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- A Risk is an event in the '''future''', not in the present.
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- It '''could''' happen (is not a fact)
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- It is '''potentially''' harmful
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- It could increase, decrease, disappear or happen
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Now passing on to the second aspect of risk in an organizational and economic entity, it is time to ask: "What is '''Risk Management'''?". We can define this concept as being: "The process of identifying risks, analyzing the exposure to them and determining how to best handle such exposure in order to decrease the probability of a project failure".
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In practice, Risk Management has the following key elements:
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*Objective
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- Identify and qualify project risks
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*Directives
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- Identify project risks (3 to 5 risks)
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- Build risk statements
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- Identify project probability and loss, and calculate exposure
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- Rank risks
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*In group
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- Discuss the identified top n risks

Revision as of 08:20, 14 March 2012

Contributors: Bogdan Dragotoiu, Cristina Sima, Maria Alexandra Baescu

Definitions

The first question to be asked on this topic is: "What is a Risk?". Briefly and commonly known a "Risk" is:

- The possibility of suffering a harm or lost.

- An element, factor or way that includes unknown dangers.

- An event that could happen and reduces the chance of success.

In a Project management approach, it can be consider that: "A risk is PROBLEM WAITING TO HAPPEN". To better understand and indentify a risk, it is indicated to look for some particular properties of it, like:

- A Risk is an event in the future, not in the present.

- It could happen (is not a fact)

- It is potentially harmful

- It could increase, decrease, disappear or happen

Now passing on to the second aspect of risk in an organizational and economic entity, it is time to ask: "What is Risk Management?". We can define this concept as being: "The process of identifying risks, analyzing the exposure to them and determining how to best handle such exposure in order to decrease the probability of a project failure".

In practice, Risk Management has the following key elements:

  • Objective

- Identify and qualify project risks

  • Directives

- Identify project risks (3 to 5 risks)

- Build risk statements

- Identify project probability and loss, and calculate exposure

- Rank risks

  • In group

- Discuss the identified top n risks

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