Risk

 Identify the key objective of project risk management, demonstrate, using an example, how the key elements of a risk management process are constructed and comment on the relationship between a risk management process and a change management process.

Risk management is the forecasting and evaluating of financial risks together with identification of procedures to avoid or minimize the impact of these risks.
The key elements of risk management are identify, assess, analyse, control, transfer and reduce.
1. Identify - see where the possible problem is and when it might occur, for this I will use the example of producing a movie, potential risks could be actor controversy, writer strikes or delays.
2. Assess - look at each situation and what is actually happening, this is the why? as in why is the actor in trouble, why are the writers on strike, etc.
3. Analyse - Look at the pros and cons of each situation and how it can actually be resolved.
4. Control - take control of the situation and put things in place to help reduce the risk, e.g. if the actor has a drinking problem give him a driver and even write it into the story that the actor's character has a drinking problem.
5. Transfer - move the problem around so that it is no longer a risk, e.g give extra days in case of delays or have another later period scheduled.
6. Reduce - Finally this is the reduction of the risk after all the other elements have been put in place then the risk can finally be reduced.

It is vital to both risk management and change management to have a good handle of the situation as they afre both risky processes that require good management relations and evaluating every outcome.


Citations:
Automation World - 2018
Lark Scheierman - 2017
Knowledge Leader - 2018
IRIM - 2018

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