Review of Project Risk Management and Risk Assessment

Abstract

Identify the risk of project and develop the strategies to reduce the effect of risk or prevent the risk from occurring is the main objective of the Project Risk Management. Due to uncertainty the project risk occurs. The possibilities are always there that something known or unknown can happen and it could affect the goal of project. Being prepared to handle the risk is known as risk management. The processes, things or situations that can harm the people or organization identified through a look by risk assessment. It evaluates and analyzes the risk after its identification. To control the harm from happening and to eliminate effectively it can decide the measure after the determination of risk.

Full text

Journal of Environmental Treatment Techniques 2019, Special Issue on Environment, Management and Economy, Pages: 1117-1120
1117
Review of Project Risk Management and Risk
Assessment
Lilis Sulastri1*, Sri Utami Ady2, Tomy Fitrio3, Angga Hapsila4, Miftahus Surur5
1Universitas Islam Negeri Sunan Gunung Djati, Indonesia
2Economic and Business Faculty, Dr. Soetomo University, Indonesia
3Sekolah Tinggi Ilmu Ekonomi Indragiri, Indonesia
4Sekolah Tinggi Ilmu Ekonomi Indragiri, Indonesia
5STKIP PGRI Situbondo, Indonesia
Received: 13/09/2019 Accepted: 22/11/2019 Published: 20/12/2019
Abstract
Identify the risk of project and develop the strategies to reduce the effect of risk or prevent the risk from occurring is the main
objective of the Project Risk Management. Due to uncertainty the project risk occurs. The possibilities are always there that
something known or unknown can happen and it could affect the goal of project. Being prepared to handle the risk is known as
risk management. The processes, things or situations that can harm the people or organization identified through a look by risk
assessment. It evaluates and analyzes the risk after its identification. To control the harm from happening and to eliminate
effectively it can decide the measure after the determination of risk.
Keywords: Project Risk Management, Risk assessment, Harm, Process, Situation
1 Introduction
1
When undertaking the projects in a business
organization risk is inevitable. It needs to ensure by the
managers of the projects that it should keep the risk at
minimal level. There are mainly two types are risk named
positive impact risk and negative impact risk. All the time
the project mangers do not face negative impact as there are
positive impact risk are also available. To counter attack
the risk the manger of projects need to define any solution
or mitigation plan after identification of particular risk. On
the basis of 4 phases of risk management the manager can
plan a strategy. These steps are: (1) identification of Risk,
(2) quantification of risk, (3) risk response to risk, and (4)
monitoring and controlling of risk
1. Identification of Risk: Supervisors face numerous
challenges with regards to naming and identifying the risks
that happen when undertaking ventures. These risks could
be settled through organized or unstructured
conceptualizing or techniques. Understand that dangers
relating to the venture must be taken care of by the
undertaking chief and different partners of the task. Risks,
for example, operational or business risk will be dealt with
by the pertinent groups. The dangers that regularly sway a
task are provider risk, budget risks and resource risk.
Provider hazard would allude to dangers that can happen on
the off chance that the provider isn't meeting the course of
events to supply the assets required. Resource risk happens
Corresponding author: Lilis Sulastri, Universitas Islam
Negeri Sunan Gunung Djati, Indonesia. E-mail:
lilis.sulastri@uinsgd.ac.id.
when the human asset utilized in the undertaking isn't
sufficient or not gifted enough. Budget risk would allude to
dangers that can happen if the expenses are more than what
was planned.
Figure 1: Risk Management
2. Quantification of Risk: On the basis of quality it can
evaluate the risks. With the help of the matrix it analyzes
the chances of occurring the risk by project managers. By
using the matrix the risk can be divided in 4 categories that
are Low, Medium, High and Critical. For place the matrix
in the categories of risk the impact on the project and
probability of occurrence are two criteria that are
considered. For example the risk can be consider as 'High'
category risk if it has highest impact like impact = 4, and it
has low risk occurrence that is probability = 2.
3. Response to Risk: To select the method that decrease
the impact of risk at minimal level when it comes to risk
Journal web link: http://www.jett.dormaj.com
J. Environ. Treat. Tech.
ISSN: 2309-1185

Journal of Environmental Treatment Techniques 2019, Special Issue on Environment, Management and Economy, Pages: 1117-1120
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management it decided by a manager of project. Between
the four strategies of risk response that are given as follows
the project manager can choose the better one.
a. Risk acknowledge
b. Pass on the Risk pass
c. To decrease the impact of risks takes corrective
measure
d. It can avoid the risk
4. Control and Monitoring the Risk
If any changes are done then on a regular basis risks
can be monitored or checked. Through assessing
mechanisms and constant monitoring it can identify the
new risk.
Figure 2: Process of Risk Management
2 Rules of Project Risk Management
The advantages of risk management in projects are
enormous. In a proactive manner if deal with event of
uncertain project it can gain a lot of money. The outcome
will be that seize the opportunities that occur and limit the
effect of project threats. This permits to deliver the project
with the quality results, on budget and on time that wanted
by sponsor of project. If the team members do not have the
chance of enter a putting out fires mode expected to fix the
disappointments that could have been anticipated they can
be much happier.
1. Both Opportunities and Threats Considered: They
are the miscreants that can hurt the project. In present day it
also additionally center around project opportunities and
positive risk. The postive risks are the uncertain situaton
that are good for organisation and project. These guys make
project more profitable,faster and better.
2. Implement and Plan Responses of Risks: Actualizing
a risk reaction is the movement that really increases the
value project. It can minimise negative effects or prevent
occurring of threat. To understand, prioritise and map risks
other rules helped. This will make a sound risk reaction
plan that spotlights on the huge successes (1-10)
3. As a Part of Project Make the Risk Management:
The principal guideline is basic to the accomplishment of
project risk management. In the event that it don't really
insert risk management in project, it cannot receive the full
advanatge of this methodology. It can experience various
defective methodologies in organizations. A few project
utilize no methodology at all to risk management. They are
either insensible, running their first undertaking or they are
some way or another certain that no risks will happen in
their task.
4. Ownership Issues Should Clarify: Some Managers of
project think they are done once they have made a rundown
of risks. Be that as it may, this is just a beginning stage.
The following stage is to clarify who is in charge of what
risk! Somebody needs to feel the warmth if a risk isn't dealt
with appropriately. The trick is basic: for each risk assign a
risk owner that it have found. To optimise risk for the
project is the responsibility of risk owner (11-18).
5. In Project Identify the Risk as soon as possible:
project risk management the executives is to recognize the
risk it is the very basic step. This requires an open
mentality that spotlights on future situations that may
happen. Two principle sources exist to distinguish risks,
paper and people. People are colleagues that each brings
along their own encounters and aptitude. Other people to
converse with are specialists outside the project that have a
reputation of the sort of undertaking or work are
confronting (19-20).
6. Associated Tasks and Risks are tracked: The register
of risk help to track the associated tasks and risks. For each
project manager tracking tasks is an everyday activity.
Coordinating risk task into that day by day schedule is the
simplest arrangement. Risk tasks might be done to
recognize or dissect dangers or to produce, implement and
select responses
7. About Risks Communicate: In many failed projects it
show that project managers in such activities were as often
as possible ignorant of the enormous sledge that was going
to hit them. The alarming finding was that much of the time
somebody of the venture association really saw the sledge,
however didn't illuminate the task administrator regarding
its reality.
8. Risks Analysis: Understanding the idea of a risk is a
precondition for a good response. In this manner, set aside
some effort to have a more critical see individual risk and
don't form a hasty opinion without realizing what a risk is
about. The data you accumulate in a hazard examination
will give important bits of knowledge into project and the
fundamental contribution to optimise the risks to find
effective responses.
9. Risks Prioritise: If a project manager sometime tell
that he equally treat all risks. This makes project life
extremely straightforward. Be that as it may, it doesn't
convey the most ideal outcomes. A few dangers have a
higher effect than others. Accordingly, it better invest your
energy in the dangers that can cause the greatest
misfortunes and additions. Check on the off chance that
have any centerpieces that could crash project.
10. Project Risks Registration: This standard is tied in
with accounting. Keeping up a risk log empowers to view
progress and ensure that it won't overlook a hazard or two.
It is additionally an ideal specialized device that educates
stakeholders and team members what is happening.
3 With ProjectManager.com Managing the
Risk
Utilizing a risk tracking format is a beginning, yet to
oversee project risks it'll need to utilize project
management software. At every phase of a project
ProjectManager.com has various instruments that let
address.

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1. For Risk Management Plans use of Gantt Charts:
Utilize our honor winning Gantt diagrams to make point by
point risk management intends to keep dangers from
getting to be issues. Timetable, appoint and screen
undertaking errands with full perceivability. Colleagues can
even add remarks and records to their relegated
assignments, so all the correspondence occurs on the task
level—continuously.
Figure 3: Gantt Charts
2. For Prioritizing and Managing Risks use Kanban
Boards: Utilize kanban sheets to sort and organize risk in
the event that they exist in a progressively deft condition.
You can utilize custom labels to recognize errands as
dangers inside task. Or on the other hand, it can devote an
entire task inside ProjectManager.com to overseeing risks,
so it can rapidly perceive how the earnest risks are being
tended to.
Figure 4: Kanban Boards
4 Risk Assessment
To lead business the identification of risks that can
impact negatively on ability of an organization is known as
risk assessment. To decrease the impact of risks to business
operations the risk assessments help identify these risks of
natural business and give controls, measures and processes.
A fundamental risk assessment will break down each
hazard occasion for the probability that the hazard will
happen and for the effect it will have in the event that it
happens. On a matrix of Risk Assessment it can plotted this
type of qualitative risk analysis information as defined in
the plan of Project Risk Management it incorporates the
risk rating rules.
Figure 5: Matrix of Risk Assessment
5 Risk assessment steps
How a risk assessment is led changes broadly relying
upon the risks special to the kind of business, the industry
that business is in and the consistence standards applied to
that given business or industry. In any case, there are five
general advances that organizations can pursue paying little
heed to their business type or industry.
Step 1: Identify the hazards. The initial phase in a risk
assessment is to distinguish any potential risks that, if they
somehow managed to happen, would adversely impact the
association's capacity to lead business. Potential dangers
that could be considered or recognized during danger
evaluation incorporate cataclysmic events, utility blackouts,
cyber-attacks and failure of control.
Step 2: After the hazards are distinguished, the
following stage is to figure out which business resources
would be adversely impacted if the hazard worked out as
expected. Business resources regarded in danger to these
risks can incorporate basic framework, IT frameworks,
business tasks, organization notoriety and even worker
wellbeing.
Step 3: Develop control measures and Evaluate the
risks. A risk analysis can help distinguish how perils will
affect business resources and the measures that can be
established to limit or take out the impact of these dangers
on business resources. Potential dangers incorporate
property harm, business interference, budgetary misfortune
and legitimate punishments.
Step 4: Findings should be record. The finding of risk
assessment ought to be recorded by the organization and
documented as effectively open, official archives. The
records ought to incorporate subtleties on potential risk,
their related dangers and plans to anticipate the risks.
Step 5: Update and review the risk assessment
regularly. Potential dangers, risks and their subsequent
controls can change quickly in a cutting edge business
condition. It is significant for organizations to refresh their
hazard appraisals normally to adjust to these changes.
6 The goal of risk assessments
Some shared objectives and goals for directing risk
assessments over enterprises and business types incorporate
the accompanying:
1. Legitimizing the expense of security countermeasures to
moderate dangers and vulnerabilities.

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2. Deciding planning to remediate or moderate the
distinguished dangers, dangers and vulnerabilities.
3. Building up a hazard profile that gives a quantitative
investigation of the kinds of dangers the association
faces.
4. Distinguishing, organizing and recording dangers,
dangers and known vulnerabilities to the association's
generation framework and resources.
5. Building up a precise stock of IT resources and
information resources.
6. Understanding the arrival on venture, if assets are put
resources into framework or different business
advantages for balance potential risk.
7. Building up a precise stock of IT resources and
information resources.
7 Conclusion
The process of analyzing, responding and identifying
any risk is known as Project risk management that that
emerges over the existence cycle of an project to enable the
task to stay on track and meet its objective. Risk
management isn't responsive just; it ought to be a piece of
the arranging procedure to make sense of hazard that may
occur in the task and how to control that hazard on the off
chance that it in actuality happens.
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