Much is written and said about risk assessment and how vital it is that this subject should form a basic part of all management training courses. It is worth going back to basics and considering what is actually meant by risk.

In this context, risk is any factor that can make the difference between the success or failure of any particular project. The key is how to assess a given risk and vitally, how to manage that risk.

To put it another way, risk is any event or situation which could occur in the future and would have a negative impact on a project. It could even make the completion of a project impossible.

By defining the various areas from which risk may arise, it is possible to have a far greater understanding of the project and to eliminate or at least manage said risks.

Some of the most common areas of risk include:

Not having a clear idea of what is required from a project
Insufficient technical knowledge
Problems with the supply chain
Processes which have not been properly defined
Communication problems
Not understanding legal implications which may arise
Unrealistic time scales

It is vital, therefore, to have a detailed business plan and timeline in place before commencing with the project.