Environmental uncertainty and fierce competition have created many challenges for organizations and managers. In order to overcome these challenges, special competencies and modern approaches to management have emerged. Risk identification and management is a novel approach, which enhances organizational effectiveness. Project risk management refers to the set of process used to identify, analyze and respond to uncertainties with the aim of maximize desired outcomes and minimizing unwanted effects.
Risk management includes the following processes:
- Risk identification
- Risk analysis
- Risk response
- Risk response control