This trend indicates a system which manages trade-off between profit and probability. In today’s world of competition, business opportunities are always linked to a factor known as a risk factor. To be a successful entrepreneur an individual skilled must possessed one key skill which is known as risk management. Risk management involves anticipation, analysing, forecasting potential positive as well as negative it comes of risk taken.
Higher the probability of achieving target, lower will be profit and vice-versa. We found this topic interesting because risk is inherent in any work we perform and Managing risk depends on the decision making, whether we are risk averse or risk taker. Talking about the skills which an individual should posses depends on many factors such as anticipation, analysing, accessing future outcomes and preparing for the same.
Anticipation is a vital skills which leads to decision making of a risk management. Market situation needs to be anticipated well in advance to take the risk. Future trend are observed, past records are observed so as to anticipate future risk involved in the business. Secondly, is analysing. Project manager as well as project member holds the key in accessing risk management.
Project manager is actively involved in decision making of a risk management, where else team member are passively involved. As a team member, one should be able to extract the data accurately, do analysis of that data using various techniques, viz. Statistical methods, and come up with various scenarios which could be either optimistic or pessimistic for the project. The data should be easy to understand.
As a PM, he/she should be able to analyze data and make decision on to work on the best scenario.PART C:It’s true that Project Management can be applied to any field like financial aspects, construction, manufacturing, etc. A better decision could help in achieving it’s goals. Project management and it’s principles can be applied to many fields of commerce as well as a research levels too. This involves capital and human resource management.
Capital investment doesn’t guaranty a success If it’s not accompanied with risk management skill. Risk management skill will highly impact various decision making trends. Holding a high skills in risk management will help myself establish in a business firm which shall grow in a prospective manner goals in a very better way. This can be reflected when we are able knock better opportunities at the right time. This is how Risk Management System will affect our future career.