Sample Solution

To manage risk on a project, the first step should be to identify potential risks and evaluate their likelihood of occurring. This should be done as early in the project as possible since risks can often arise from changes in scope or timelines. A risk assessment matrix is an effective tool for identifying, assessing and assigning resources to address each identified risk. This matrix typically includes columns for the description of a risk, its severity/impact on the project, probability of occurrence, suggested action plan and assigned responsible party.

Once all potential risks have been identified and assessed, it’s important to develop strategies to prevent them from occurring or reduce their impact if they do occur. Strategies may include creating contingency plans and procuring insurance policies. It’s also important to consider how communication with stakeholders will take place throughout the process so that everyone is clear about what actions need to be taken if a risk occurs.