The risk management for a particular project finds, addresses, and foresees the uncertainties that might affect the time table and the objective of the project. The whole process of management that are related to the technical, schedule and cost probabilities are all part of the risk management. It is a means of preventing any problem that might occur in the project.
Risk management includes determining all the circumstances that could go wrong, evaluating the impact and also identifying the possible problems that need to be prevented from taking place. It is an activity done in all levels of the project to make sure of the accurate coverage of all areas of the possible problems.
There should be an open communication to give all the personnel of the project a chance to determine the issues or the risks with no bad effect to each of them. The critical areas that might be at risk should be determined as early as the proposal of the project because the risks involved in the development of the project may cause delay in the dates of delivery. There are times when the project is successful but the product is not. This means that risk management is considered as a process oriented procedure.
The goal of risk management is to solve and reduce all the risks that are related to an aspect that is selected before determining how the customers will accept the project. Risks may be referred to as the different threats that might be encountered along the development of the project and it also involves all the means that are available for the organization and the staff to use. The best time to use risk management is when the alternatives are identified to solve the problem and be used for the future definition of the system even during its development stage.