PM 584 - Week 4.docx - Running head RISK MANAGEMENT...

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Running head: RISK MANAGEMENT PLANNING 1 Risk Management Planning XXXXXXX PM/584 August 14, 2017 James Powell
RISK MANAGEMENT PLANNING 2 Risk Management Planning “The primary purpose of risk management is to allow an organization to achieve its objectives and to create value for it and its stakeholders” (Cooper, et al, 2014, page 3). Risk management is the process to identify, evaluate, and prioritize risks with the intention to reduce or eliminate any risks the project could encounter (Cooper, et al, 2014). The following paper will address the project risk management procedures and responses to the potential risks. A risk action plan was also created which outlines one risk in the California High-Speed infrastructure project. Project Risk Management Procedures Risks can arise at any time due to the uncertainties the future holds for the project (Cooper, et al, 2014). Usually risks can arise “through changes in the relationships between the parties involved in the supply, ownership, operation and maintenance of assets for public or private purposes.” (Cooper, et al, 2014, page 3). Risk management can be used to provide a structured way to evaluate and deal with future uncertainty (Cooper, et al, 2014). “The risk management process involves the systematic application of management policies, process and procedures to the tasks of communicating and consulting about, establishing the context of and identifying, analyzing, evaluating, treating, monitoring and reviewing risk.” (Cooper, et al, 2014, page 7). Some of the risk management procedures include: Risk prevention which attempts to eliminates risk and the likelihood of occurrence. Some examples of this would include: detailed planning, monitoring, reviewing risk, and auditing. Risk identification is the process of attempting to determine various things such as why and how things occur (Cooper, et al, 2014).
RISK MANAGEMENT PLANNING 3 Risk analysis is an organized way to use information that is available to try and understand risks and the level of such risks (Cooper, et al, 2014).

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