The are several important benefits of Project Risk Management such as:
- Anticipating risks/uncertainties in the project execution phase by accounting for them in the project plan
- Creating realistic cost and schedule estimates, leading to an increased confidence in the Project Manager by the different stakeholders
- Responding calmly and rationally to project risks as they occur
- Adding a touch of professionalism to the Project Management culture in the company, positively affecting the image of the Project Manager
- Minimizing the possibility and/or impact of scope creeps
- Managing stakeholders’ expectations since the Project Manager is able to accurately assess their requirements and the real impact those requirements may have on the project
- Documenting risks and their associated responses to be used as a reference in future projects. This will improve the reliability of Project Management with every project the company executes.
The most important benefit is, of course, managing a project that is more likely to succeed.
It should be noted that there’s a cost of the above benefits: Project Risk Management creates a considerable overhead on the project (especially during Project Planning). To be able to perceive its real value, one should compare it to any kind of insurance: it has high costs, and many never be used, but it adds confidence, and once needed, it does make all the difference.
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