Review of Project Risk Management and Risk Assessment

Journal of Environmental Treatment Techniques

2019, Special Issue on Environment, Management and Economy, Pages: 1117-1120

J. Environ. Treat. Tech.

ISSN: 2309-1185

Journal web link: http://www.jett.dormaj.com

Review of Project Risk Management and Risk

Assessment

Lilis Sulastri *, Sri Utami Ady , Tomy Fitrio , Angga Hapsila , Miftahus Surur

¹Universitas Islam Negeri Sunan Gunung Djati, Indonesia

Economic and Business Faculty, Dr. Soetomo University, Indonesia

Sekolah Tinggi Ilmu Ekonomi Indragiri, Indonesia

STKIP PGRI Situbondo, Indonesia

Received: 13/09/2019

Accepted: 22/11/2019

Published: 20/12/2019

Abstract

Identify the risk of project and develop the strategies to reduce the effect of risk or prevent the risk from occurring is the main

objective of the Project Risk Management. Due to uncertainty the project risk occurs. The possibilities are always there that

something known or unknown can happen and it could affect the goal of project. Being prepared to handle the risk is known as

risk management. The processes, things or situations that can harm the people or organization identified through a look by risk

assessment. It evaluates and analyzes the risk after its identification. To control the harm from happening and to eliminate

effectively it can decide the measure after the determination of risk.

Keywords: Project Risk Management, Risk assessment, Harm, Process, Situation

when the human asset utilized in the undertaking isn't

Introduction

sufficient or not gifted enough. Budget risk would allude to

dangers that can happen if the expenses are more than what

was planned.

When undertaking the projects in

business

organization risk is inevitable. It needs to ensure by the

managers of the projects that it should keep the risk at

minimal level. There are mainly two types are risk named

positive impact risk and negative impact risk. All the time

the project mangers do not face negative impact as there are

positive impact risk are also available. To counter attack

the risk the manger of projects need to define any solution

or mitigation plan after identification of particular risk. On

the basis of 4 phases of risk management the manager can

plan a strategy. These steps are: (1) identification of Risk,

(

2) quantification of risk, (3) risk response to risk, and (4)

monitoring and controlling of risk

. Identification of Risk: Supervisors face numerous

challenges with regards to naming and identifying the risks

that happen when undertaking ventures. These risks could

settled through organized or

unstructured

Figure 1: Risk Management

conceptualizing or techniques. Understand that dangers

relating to the venture must be taken care of by the

undertaking chief and different partners of the task. Risks,

for example, operational or business risk will be dealt with

by the pertinent groups. The dangers that regularly sway a

task are provider risk, budget risks and resource risk.

Provider hazard would allude to dangers that can happen on

the off chance that the provider isn't meeting the course of

events to supply the assets required. Resource risk happens

2. Quantification of Risk: On the basis of quality it can

evaluate the risks. With the help of the matrix it analyzes

the chances of occurring the risk by project managers. By

using the matrix the risk can be divided in 4 categories that

are Low, Medium, High and Critical. For place the matrix

in the categories of risk the impact on the project and

probability of occurrence are two criteria that are

considered. For example the risk can be consider as 'High'

category risk if it has highest impact like impact = 4, and it

has low risk occurrence that is probability = 2.

Corresponding author: Lilis Sulastri, Universitas Islam

Negeri Sunan Gunung Djati, Indonesia. E-mail:

lilis.sulastri@uinsgd.ac.id.

3. Response to Risk: To select the method that decrease

the impact of risk at minimal level when it comes to risk

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Journal of Environmental Treatment Techniques

2019, Special Issue on Environment, Management and Economy, Pages: 1117-1120

management it decided by a manager of project. Between

the four strategies of risk response that are given as follows

the project manager can choose the better one.

a. Risk acknowledge

b. Pass on the Risk pass

c. To decrease the impact of risks takes corrective

measure

of risks. Be that as it may, this is just a beginning stage.

The following stage is to clarify who is in charge of what

risk! Somebody needs to feel the warmth if a risk isn't dealt

with appropriately. The trick is basic: for each risk assign a

risk owner that it have found. To optimise risk for the

project is the responsibility of risk owner (11-18).

5. In Project Identify the Risk as soon as possible:

project risk management the executives is to recognize the

risk it is the very basic step. This requires an open

mentality that spotlights on future situations that may

happen. Two principle sources exist to distinguish risks,

paper and people. People are colleagues that each brings

along their own encounters and aptitude. Other people to

converse with are specialists outside the project that have a

reputation of the sort of undertaking or work are

confronting (19-20).

d. It can avoid the risk

4. Control and Monitoring the Risk

If any changes are done then on a regular basis risks

can be monitored or checked. Through assessing

mechanisms and constant monitoring it can identify the

new risk.

6. Associated Tasks and Risks are tracked: The register

of risk help to track the associated tasks and risks. For each

project manager tracking tasks is an everyday activity.

Coordinating risk task into that day by day schedule is the

simplest arrangement. Risk tasks might be done to

recognize or dissect dangers or to produce, implement and

select responses

. About Risks Communicate: In many failed projects it

Figure 2: Process of Risk Management

show that project managers in such activities were as often

as possible ignorant of the enormous sledge that was going

to hit them. The alarming finding was that much of the time

somebody of the venture association really saw the sledge,

however didn't illuminate the task administrator regarding

its reality.

8. Risks Analysis: Understanding the idea of a risk is a

precondition for a good response. In this manner, set aside

some effort to have a more critical see individual risk and

don't form a hasty opinion without realizing what a risk is

about. The data you accumulate in a hazard examination

will give important bits of knowledge into project and the

fundamental contribution to optimise the risks to find

effective responses.

Rules of Project Risk Management

The advantages of risk management in projects are

enormous. In a proactive manner if deal with event of

uncertain project it can gain a lot of money. The outcome

will be that seize the opportunities that occur and limit the

effect of project threats. This permits to deliver the project

with the quality results, on budget and on time that wanted

by sponsor of project. If the team members do not have the

chance of enter a putting out fires mode expected to fix the

disappointments that could have been anticipated they can

be much happier.

. Both Opportunities and Threats Considered: They

are the miscreants that can hurt the project. In present day it

also additionally center around project opportunities and

positive risk. The postive risks are the uncertain situaton

that are good for organisation and project. These guys make

project more profitable,faster and better.

9. Risks Prioritise: If a project manager sometime tell

that he equally treat all risks. This makes project life

extremely straightforward. Be that as it may, it doesn't

convey the most ideal outcomes. A few dangers have a

higher effect than others. Accordingly, it better invest your

energy in the dangers that can cause the greatest

misfortunes and additions. Check on the off chance that

have any centerpieces that could crash project.

10. Project Risks Registration: This standard is tied in

with accounting. Keeping up a risk log empowers to view

progress and ensure that it won't overlook a hazard or two.

It is additionally an ideal specialized device that educates

stakeholders and team members what is happening.

2. Implement and Plan Responses of Risks: Actualizing

a risk reaction is the movement that really increases the

value project. It can minimise negative effects or prevent

occurring of threat. To understand, prioritise and map risks

other rules helped. This will make a sound risk reaction

plan that spotlights on the huge successes (1-10)

3. As a Part of Project Make the Risk Management:

The principal guideline is basic to the accomplishment of

project risk management. In the event that it don't really

insert risk management in project, it cannot receive the full

advanatge of this methodology. It can experience various

defective methodologies in organizations. A few project

utilize no methodology at all to risk management. They are

either insensible, running their first undertaking or they are

some way or another certain that no risks will happen in

their task.

3 With ProjectManager.com Managing the

Risk

Utilizing a risk tracking format is a beginning, yet to

oversee project risks it'll need to utilize project

management software. At every phase of a project

ProjectManager.com has various instruments that let

address.

4. Ownership Issues Should Clarify: Some Managers of

project think they are done once they have made a rundown

1118

Journal of Environmental Treatment Techniques

2019, Special Issue on Environment, Management and Economy, Pages: 1117-1120

1. For Risk Management Plans use of Gantt Charts:

Utilize our honor winning Gantt diagrams to make point by

point risk management intends to keep dangers from

getting to be issues. Timetable, appoint and screen

undertaking errands with full perceivability. Colleagues can

even add remarks and records to their relegated

assignments, so all the correspondence occurs on the task

level—continuously.

Figure 5: Matrix of Risk Assessment

Risk assessment steps

How a risk assessment is led changes broadly relying

upon the risks special to the kind of business, the industry

that business is in and the consistence standards applied to

that given business or industry. In any case, there are five

general advances that organizations can pursue paying little

heed to their business type or industry.

Figure 3: Gantt Charts

Step 1: Identify the hazards. The initial phase in a risk

assessment is to distinguish any potential risks that, if they

somehow managed to happen, would adversely impact the

association's capacity to lead business. Potential dangers

that could be considered or recognized during danger

evaluation incorporate cataclysmic events, utility blackouts,

cyber-attacks and failure of control.

Step 2: After the hazards are distinguished, the

following stage is to figure out which business resources

would be adversely impacted if the hazard worked out as

expected. Business resources regarded in danger to these

risks can incorporate basic framework, IT frameworks,

business tasks, organization notoriety and even worker

wellbeing.

. For Prioritizing and Managing Risks use Kanban

Boards: Utilize kanban sheets to sort and organize risk in

the event that they exist in a progressively deft condition.

You can utilize custom labels to recognize errands as

dangers inside task. Or on the other hand, it can devote an

entire task inside ProjectManager.com to overseeing risks,

so it can rapidly perceive how the earnest risks are being

tended to.

Step 3: Develop control measures and Evaluate the

risks. A risk analysis can help distinguish how perils will

affect business resources and the measures that can be

established to limit or take out the impact of these dangers

on business resources. Potential dangers incorporate

property harm, business interference, budgetary misfortune

and legitimate punishments.

Figure 4: Kanban Boards

Step 4: Findings should be record. The finding of risk

assessment ought to be recorded by the organization and

documented as effectively open, official archives. The

records ought to incorporate subtleties on potential risk,

their related dangers and plans to anticipate the risks.

Step 5: Update and review the risk assessment

regularly. Potential dangers, risks and their subsequent

controls can change quickly in a cutting edge business

condition. It is significant for organizations to refresh their

hazard appraisals normally to adjust to these changes.

Risk Assessment

To lead business the identification of risks that can

impact negatively on ability of an organization is known as

risk assessment. To decrease the impact of risks to business

operations the risk assessments help identify these risks of

natural business and give controls, measures and processes.

A fundamental risk assessment will break down each

hazard occasion for the probability that the hazard will

happen and for the effect it will have in the event that it

happens. On a matrix of Risk Assessment it can plotted this

type of qualitative risk analysis information as defined in

the plan of Project Risk Management it incorporates the

risk rating rules.

6 The goal of risk assessments

Some shared objectives and goals for directing risk

assessments over enterprises and business types incorporate

the accompanying:

1. Legitimizing the expense of security countermeasures to

moderate dangers and vulnerabilities.

1119

Journal of Environmental Treatment Techniques

2019, Special Issue on Environment, Management and Economy, Pages: 1117-1120

Deciding planning to remediate or moderate the

distinguished dangers, dangers and vulnerabilities.

13. Zou, P., Zhang, G. and Wang, J-Y. Understanding the key

risks in construction projects in China. International Journal of

Project Management, 2007;25:601– 614.

. Building up a hazard profile that gives a quantitative

investigation of the kinds of dangers the association

faces.

14. Zou, P., Zhang G., Wang J-Y. Identifying Key Risks in

Construction Projects: Life Cycle and Stakeholder

Perspectives. Sydney: Faculty of Built Environment,

University of New South Wales, 2006.

Distinguishing, organizing and recording dangers,

dangers and known vulnerabilities to the association's

generation framework and resources.

15. Nakhaei A, Davoodnia A, Nakhaei H. (NH4) 42

[MoVI72MoV60O372 (CH3COO) 30 (H2O) 72] as a

. Building up a precise stock of IT resources and

information resources.

. Understanding the arrival on venture, if assets are put

resources into framework or different business

advantages for balance potential risk.

Heterogeneous Reusable Catalyst for Organic

Reactions: Mini-Review. Journal of Chemical Reviews.

2019 Mar 1;1(2. pp. 78-153):139-53.

6. Solomon O, Rabiu Saidu Umar W, Sanusi Wara H,

Sadiq Yakubu A, Michael Azubuike M, Asugu Mary

M, Louis H. Antiulcerogenic Activity of methanol

extract and solvent fractions of Stem Bark of Lannea

acida (A. Rich) Against Ethanol-Induced Gastric

Mucosal Injury in Albino Rats. Progress in Chemical

and Biochemical Research. 2019 Jan 3;1(1, pp. 1-

. Building up a precise stock of IT resources and

information resources.

Conclusion

The process of analyzing, responding and identifying

any risk is known as Project risk management that that

emerges over the existence cycle of an project to enable the

task to stay on track and meet its objective. Risk

management isn't responsive just; it ought to be a piece of

the arranging procedure to make sense of hazard that may

occur in the task and how to control that hazard on the off

chance that it in actuality happens.

80):29-39.

17. Ghanbaria F, Monavarib SM, Sadrc MK, Rahimib R,

Mirbolookia H. Pesticide in Soil and Rice Crop from

North of Iran: Concentration and Risk Assessment.

Advanced Journal of Chemistry, Section A:

Theoretical, Engineering and Applied Chemistry. 2019

Aug 26.

18. Beigzadeh R, Rastegar SO. Assessment of Cr (VI)

Biosorption from Aqueous Solution by Artificial

Intelligence. Chemical Methodologies. 2020 Mar 1;4(2.

pp. 115-219):181-90.

19. Sultana M, Ahmed S, Rabbi F, Alam MT. Identification

of lectins from the seeds of Bangladeshi plants Sesbania

bispinosa and Senna occidentalis by hemagglutination

assay. Asian Journal of Green Chemistry. 2019 Feb 2.

20. Zolnikova IF, Silkin II, Popov AP, Tomitova EA,

Ovcharenko ND. Muskrat’s (Ondatra Zibetica)

endicrine regulation organs as bioindicators for

evaluation of ecological conditions in Baikal Region.

EurAsian Journal of BioSciences. 2019 Jul 7;13(2):707-

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