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Why Is Risk Management Important?
I believe there are risks associated with every project. Using risk management helps me to
prevent problems from occurring or to reduce their impact on my project when they do occur.
Risk management helps to prevent surprises and the need for crisis management.
The chart on the page represents
the triple constraints for projects.If one element changes due to a risk event, the other two elements are affected. Risk management helps me to reduce the impact of those risk events on each of the three constraints, helping to make my projects more successful.
The risk management plan enables me to define what needs to be done to reduce the risk of the project and to track each of those actions. Because risk management is an iterative process, it is important to look at the risk management plan at each of the major milestones or checkpoints. If you never look at the risk management plan after you initially create it, the plan will not help you.