The Project Management Institute (PMI) of the United States of America

Project Management and Risk Management
Student Name
Institution Affiliation
Project Management and Risk Management
The Project Management Institute (PMI) of the United States of America defines risk as uncertainties that, if, occurs, can cause either positive or negative impacts on a project’s objectives. The main reason why numerous projects fail is due to a lack of proper risk management. Many individuals downplay the significance of risk management, not knowing how it detriments the success of a project (Frederick, 2016). Risk is always viewed as a negative thing that might not necessarily occur and, therefore, should not use the project’s resources.
Risk identification is key as it allows the risk management team to ensure that all the possible risks that can affect the success of a project are recognized. In doing so, the team is aware of the risks and the potential outcomes it can cause to a project. The identification of risk makes one understand the nature of the risk and how best it can be handled. Factors to be considered whe...