Optimal effects of risk management (RM) are obtained if RM is implemented early on, ideally starting at the kick-off meeting. But why risk management? Nobody involved in the project has achieved any success so far and we are to speak about everything that could possibly go wrong. This attitude clearly is not considered by an entrepreneur and some good and brilliant idea is not realized. Using RM to ensure the realization of projects and ideas saves money and resources.
Risk and chances are tightly intertwined. If risks are considered, chances arise. And these chances are to be monitored just as the risks are.
Risk management saves money in the medium- and long-term. The RM cycle consists of the following five steps:
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Identification
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Evaluation
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Prioritization
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Minimization
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Supervision