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Introduction on PRINCE2 Risk Theme

What is risk?

A risk is an uncertain event or set of events that should occur will have an effect on the achievement of objectives. It consists of a combination of the probability of a perceived threat or opportunity occurring and the magnitude of its impact on objectives. We use two terms in relation to risks one of them is threat, threat is an uncertain event that could have a negative impact on objectives. The other term we usually use is opportunity, it is used to describe an uncertain event that could have a favorable effects on objectives. So, risk isn't necessarily only associated with bad things, it can be associated with good things happening as well.

What is the purpose of the risk theme?

The purpose of the risk theme is to identify, assess and control uncertainty and as a result improve the ability of the project to succeed. It is not possible to completely avoid taking risks in projects because projects enable change and change brings uncertainty and risk. Risk Management is continuous throughout the life of our project. You set up your risk management very early in the project and you're looking out for a managing risks throughout the project

What is at risk?

What is at risk of the projects objectives? And you know the project objectives are specifically of:

  • Time

  • Costs

  • Quality

  • Scope

  • Benefit

  • Risk

So at risk could be time if something happens in may delay things it could be cost if something happens it could cost a small money that may be an opportunity to save cost to save money that may be an opportunity to save time to do things more quickly.

What is Risk Management?

Risk management is the systematic application or procedures to the tasks of identifying and assessing risks, then planning and implementing risk responses. That start briefly with identification we look for risks that could affect the achievement of the projects objectives and then make sure that we describe and clearly enough that there is a common understanding of these risks. Then we assess the risks we make sure that we can rank firm that we can work out their estimated likely or what sort of impacts they're by have how close they are to happening and then we look at the overall level of risk associated with the project basically we try to assess is this a very risky project to allow other a lot of risks that of wrecking the success of this project. And then the third step of controlling risk means that we identify appropriate responses to the risks. We assigned risk owners, make them responsible for dealing with each risk and then we execute monitor and control the response is that we make to risks that's risk management.

First of all in the long term we have strategic risk perhaps changes within the whole organization or that changes within the industry or sector where our organization operates. We then have in the medium term what will cool risk associated with business change risk of effecting perhaps a program comprising various projects and that includes specifically risk affecting just how current project again that costs medium term risk and then within and organization where there is a significant operational content we may have short term operational risk that can affect or be affected by a medium or long-term perspectives as well.

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