Organizations in general and project managers in particular do not perform risk analyses as well or as thoroughly as they should. Part of the problem is that risks are not easily identified, and, therefore, it is human nature to ignore those things not easily quantified. But the fact is, all projects have risks, and to ensure success, they must be identified and planned for.
Every organization should have in place a risk management process. One model for such a process is contained in this chapter and consists of these steps.
Planning risk management
Identifying and assessing risk
Developing and implementing risk response
Tracking risk response
Documenting and archiving risk history
One of the key factors for risk management success is documenting and using the lessons learned from each project. Without a documented chronicle of what went right, what went wrong, the reasons for both, and the solutions to problems, an organization cannot improve its project success rate. Managing risks is the key to project success.