Talk:Risk management

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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