Risk Analysis for Project Management

This paper illustrates various activities, where identification of risk is a primary task before its actual occurrence whereas proper plan can be done and executed to handle the risk during project period and complete the project successfully. The study has been done to find out the common risk, during project. The study was based on data, having experiences of 5 to 20 years from various fields contributing in different project phases. During survey it was found that 72% of respondents think that the budget and resource provided for project are probably sufficient, with margin. It may not be 100% realistic but can be managed with some addition efforts. Budget is complete financial estimation of the cost required for each and every task to achieve the goal or success of the project over project life cycle. 60% of respondents believe that timeline provided by the institute for the project is not enough to compete the scheduling and planning of the project. According to 80% respondents some of equipment/parts having lead time high and may cause delay. 58% of the respondents think that if the project team locations are multiple it leads to issues related to communication. 64% people think that within their organisation lesson learnt from past experience and identification of risk defines process availability. Risk Analysis can become a tool during planning phase. Identification of risk and understanding the impact is an important activity. It will help to plan judiciously and manage the risk so that it can be minimised and success of project can be achieved. The value at risk measures the potential loss in value due to risk at project phase. Risk can lead to extra cost, time, equipment's and failure of the project. Risk assessment has great role to play while in planning at various project phase. With the help of the outcome of the study, the plan for risk reduction can be done in advance.