A project manager and the project team should not focus on project firefighting but should allocate sufficient time and resources to preventing problems throughout the life of the project. Project Risk management is one way of preventing problems that can negatively affect the project objectives of cost, schedule, scope, and quality. Effective risk management is directed at eliminating threats and increasing opportunities to ensure project success.

(1) Examine a project that you have worked on or know about and discuss the types of risks or opportunities did the project face (be specific) and how did you/ the organization deal with uncertainty of these events?

(2) Identify and explain the key processes required for effective project risk management.