Risk Management Memo From a Project Manager

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The response addresses the queries posted in 2006 words with references.

//The given paper is in the form of a memorandum. In this memorandum paper, the project manager requires the risk management process for the project. In the first section of the memo, I am describing the concept of risk and risk management to make the user understand the role of individuals perfectly. The essentialness of the risk management is also described.//

Memorandum

Date: September 5, 2007

To: XYZ Company.

From: Project Manager

Subject: INTEGRATING RISK MANAGEMENT

Risk management is essential part of an organization. It is integrated in the roles and responsibilities of the employees. Risk management is combined with the job.

Risk means the uncertainty of outcomes and in financial terms it is variability in returns. Risk management is the activity performed by humans that includes identifying risk, risk evaluation and developing a plan to manage the risk. Risk is minimized by utilizing the resources and expertise. Policy for risk management includes transferring of a risk, avoiding the bad outcomes of risk and hedging to avoid risk. Managing risk helps in smooth and efficient working of the business operations. In the present times, it has become a necessity for every organization to focus on risk management due to globalization. There is borderless world, no boundaries for business and changes in one developing country's economy affect all the world economies. For example, changes in Crude oil price have an impact on all the stock markets and oil companies of world.

//After analyzing the concept of risk and risk and risk management, in the next section of the discussion, I am providing the types of risks associated with the projects undertaken by different business organizations and the effect of these risks.//

There are various types of risks as political, legal, production, marketing, natural, environmental, and financial and personnel risk. Financial risk is managed through hedging in financial instruments, investment in different industries and markets. Goal of risk management is to minimize various risks bearing the dangers from competitive firms, society and technology. There is an increased risk in economies of countries and political risk is also vital to be considered. Financial markets are exposed to risk due to currency exchange rates as markets have become wider for firms. Companies provide their products in the international market, thus it is obvious to be affected by exchange rates. Top companies of world focus risk management and are safe from various risk losses. For a project manager, minimizing risk and developing appropriate measures to fight with it is a significant activity.

// After describing the various types of risks in the next section of the discussion, the effective steps taken by the project manager are described by me. This knowledge will help the reader to understand the importance of the risk management practices in the projects of the organizations.//

First activity for a project manager is to identify risk in a particular project. It includes what is the job in minimizing risk, financial resources and responsibilities. After identifying the risk, the manager is appointed to handle and manage specific job ...