What is the importance of risk management?

The importance of risk management is second to none. This is especially true when it comes to effectively managing or running a commercial enterprise. Before any business owner or investor takes a chance, he or she must carefully weigh their available options and choices. This includes how much loss can be assessed with certain investments or business changes. The individual will also take into account the possible benefits and revenue that can be secured via risky investments and changes.
Basically if you are a project manager who assumes the best all the time, you won't be a project manager for very long! Projects are full of risks but unless these are quantified, managed and mitigated the project could quickly hit a brick wall. Having said that I have recently managed a project where over 300 risks were raised and needed to be managed. The project ended up having to be stopped, but not due to any one of the 300 risks raised. No it was stopped due to the credit crunch which no-one forsaw! Regards Susan de Sousa, Site Editor www.my-project-management-expert.com