Classification of Risk in a project
Example: Let us consider a satellite-based mobile communication project. The project manager can identify many risks in this project. Let us classify them appropriately.
- What if the project cost escalates and overshoots what was estimated? – Project Risk
- What if the mobile phones that are developed become too bulky to conveniently carry? Business Risk
- What if call hand-off between satellites becomes too difficult to implement? Technical Risk
What is Risk Management?
A risk is a probable problem; it might happen, or it might not. There are main two characteristics of risk.
- Uncertainty: the risk may or may not happen which means there are no 100% risks.
- Loss: If the risk occurs in reality, undesirable results or losses will occur.
In this Article we will understand Risk Management in detail.
Table of Content
- What is Risk Management?
- Why is risk management important?
- The risk management process
- Understanding Risks in Software Projects
- Classification of Risk in a project
- Risk management standards and frameworks
- Benefits of risk management
- Limitation of Risk Management
- Conclusion
- Frequently Asked Questions (FAQs) on Risk Management