Risk management -- why?
Risk management (RM) is a method of ensuring that, for a specific project, all risk events are identified, qualified, and handled. The article, relying on the principles of the PMBOK® Guide, overviews the concepts used in RM, provides definitions of key terms, and explains how RM can be used in a disciplined way to add value to a project and increase its probability of success. Decision trees and Monte Carlo simulations are discussed as two approaches to qualified risk analysis. Once the RM process has been completed, it is important to maintain the risk set, and review and adjust it periodically.