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Risk management is an essential process in any project especially one that involves collaboration of various entities. Risks can be encountered in planning, actual project execution and even after the project has been completed. The rationale for risk management planning is to develop and implement various measures that are geared towards anticipating various sources of risks, vulnerabilities or threats and then recommend appropriate mitigation measures for such risks. Traditionally, risks have been equated to disasters without paying adequate consideration to small vulnerabilities that cause damages to most organizations and projects.
The main purpose of risk management plans is to effectively identify various types of threats and risks and the processes or operations that likely to be affected and devising methods to neutralize them before they can have adverse effects on the project processes (Edwards and Bowen, 2013). The plan acts as a ready solution for any event characterized as a risk or disaster and evaluates the impact of such event to the project process for future remedial.
The general objective of a risk management plan is to create, set and implement procedures and guidelines to enable organizations and individuals complete its targets without interruptions and within set objectives. Any appropriate risk management plan must be able to use both qualitative and quantitative values to identify and categorize threats including the level of risks, potential magnitude of loss and the threat happening.
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