How a risk assessment matrix help in this process

Describe what needs to be done to manage risk on a project. When should this be done? How can a risk assessment matrix help in this process?

Sample Solution

To manage risk on a project, the following steps should be taken:
1. Identifying risks – At the beginning of the project, all potential risks and uncertainties should be identified. This includes financial, technical and legal issues that could have an impact on the successful completion of the project.
2. Assessing risks – Once all potential risks are identified, they should be assessed as to their probability and severity. The team can then decide whether or not it is necessary to take action to mitigate each particular risk.
3. Mitigating risks – If action is needed to reduce or eliminate a risk, strategies such as developing contingency plans, insurance coverage or outsourcing should be considered for implementation in order to minimize any potential damage from the risk occurring.

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