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Risk Management
By 13BSM214 (Nadeem Aslam)
To Engineer Ijaz Ahmed Qureshi
Govt. College of TechnologyRailway Road Lahore
BSC Mechanical Engineering Technology (2013-2017)(7th Semester, Section “B”)
Risk Management
What is Risk?Risk involves the chance an investment's actual return will differ from the expected return. Risk includes the possibility of losing some or all of the original investment.
Risk Management
RISK
Risk Management
Definition of risk by ISO
Risk is the “Effect of uncertainty on objectives.”
Risk Management
Project risks They threaten the project planIf they become real, it is likely that the project schedule will slip and that costs will increase
Categories of Risks
Risk Management
Technical risks They threaten the quality and timeliness of the software to be producedIf they become real, implementation may become difficult or impossible
Categories of Risks
Risk Management
Business risks They threaten the viability of the software to be builtIf they become real, they jeopardize the project or the product
Categories of Risks
Risk Management
What is Risk Management?
In its purest form, risk management is the identification, classification and prioritization of risks. This is generally done in tandem with efforts to monitor, control and mitigate the risks.
Risk Management
Method of Risk Management
Identify, characterize threats Assess the vulnerability of critical assets to
specific threats Determine the risk. Identify ways to reduce those risks Prioritize risk reduction measures based on a
strategy
Risk Management
Risk Management
The process should create valueIt should be an integral part of the organizational processIt should factor into the overall decision making processIt must explicitly address uncertaintyIt should be systematic and structured
Principles of Risk Management
Risk Management
It should be based on the best available informationIt should be tailored to the projectIt must take into account human factorsIt should be transparent and all-inclusiveIt should be dynamic and adaptable to changeIt should be continuously monitored and improved upon as the project moves forward
Risk Management
ConclusionsRisk management is a very broad field and often requires a very specialized knowledge set and background to perform adequately.
