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Risk management is one of the key roles a team or a project manager carries out on their daily basis. The project you are carrying out will run out smoothly if you are able to put into action the five core principles of risk management and this will be a positive experience for everyone. Risk is commonly defined as an uncertain because when it occurs it has either positive or negative impacts to your project. It is important to note that risk can make both negative and positive effects on a project. This is because each team member can fall into a trap of thinking that risk will only affect their businesses negatively. It is important for you as a project manager to be open to the risks that create positive opportunities so that you can be able to streamline your projects and they will turn out to be smarter and profitable.

In the risk management process there are five steps that can be followed. The five steps are always the same the names used to describe them is the only different thing. When the five steps are combined they come up with a simple and effective risk management process. These steps include the following .

The first step towards an effective risk management is identification. You and your team should be able to uncover, recognize, and describe all the risks they might affect the outcomes of your project. As the project manager there are a few steps that you should use so that you can identify project risks. At this point you start by preparing your project risk manager. The second step you should follow for you to come up with an effective risk management is analyzing. Once you have identified the risk, then you should analyze the likelihood and the consequences of all the risks. You should be able to understand the nature of the risk and the effect it can hove on your project. This should also be included in the project risk register.

The third steps towards a successful risk management is evaluating and ranking. It is important you evaluate and rank the risk after identifying and analyzing the risk because this will help you determine the magnitude of the risk as well as the possible consequences. At this point you should make a decision on whether the risk is acceptable or it is serious enough to issue a warranty. Ensure that you have included this in the project risk register. Treat is the fourth step towards a successful risk management process. Risk response planning is another name that can be used instead of treat. At this step you should assess your highest ranked risk and come up with a plan to manage the risk the treats that you will use should also be included in the project risk register. The fifth step is monitoring and reviewing.

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