PROJECT RISK MANAGEMENT

Risk management:
Modern project management methodologies give great importance to risk management, which is a structured process that allows the manager to identify, plan and manage risks during planning and implementation of the project on a step by step basis.
Risk analysis processes include:

• Risk identification
• Risk estimation and evaluation
• Planning risk responses

Examples of project risks:
There are multiple examples of project risks, some of them could be:

• External - Related to legislation, economic situation, exchange rate, competition, lobbying, etc.
• Internal - Related to staff fluctuation, conflicts in the team or lack of management support
• Technical - Related to choice of technology, standards or certificates
• Technological - Related to implementation or exploration of chosen technology
• Financial - Budget shortage, scope modifications, etc.

PRAM
PRAM is a methodology that makes it possible to analyze the risk associated with the project and manage this risk. Properly applied, it increases the likelihood of successful completion of the project. The methodology process consists of two stages: risk analysis and risk management.
Personal perspective
From my perspective, the first step is to identify risks, that is their characteristics in relation to the project. Qualitative analysis is the process of hierarchizing risks by threat and probability. Then, for the higher probability and higher threat ones, risk response should be planned accordingly, which consists on developing solutions that reduce risks and increase chances of project success. The most important part is tracking of identified risks and recognizing new risks by its continuous evaluation.