The Impact of Risk Management on Project Performance
Yassar Ahmed Al-Zu'bi in the Impact of Risk Management on Project Performance at the Gate Academy's celebration:
Introduction
Risk management is the process of identifying, assessing, and controlling threats to an organization's capital and profits. These risks stem from a variety of sources, including financial uncertainties, legal liabilities, technological issues, strategic management errors, accidents, and natural disasters. A successful risk management program helps the organization examine the full scope of the risks it faces. Risk management also examines the relationship between risks and the subsequent impact they can have on the organization's strategic objectives.
Risks can be either positive or negative for an organization, representing opportunities that can increase business value or, conversely, harm the organization if not exploited. In fact, the goal of any risk management program is not to eliminate all risks but to preserve and enhance the value of the organization by making smart decisions about risks.
Therefore, a risk management program must be integrated with the organizational strategy of institutions to link them together. Risk management leaders must first determine the extent to which the organization is susceptible to risks it faces, i.e., the amount of risk it is willing to accept to achieve its goals.
Every institution faces risks of unexpected adverse events that can cost it money or even lead to its closure. Risks that are not addressed can also lead to problems, and the most vulnerable companies are startups and small businesses.
Significance of the Study
This study derives its significance from clarifying the concept of risk management and its impact on project performance, as well as how to apply the concept of risk to project performance. This study can be considered a source for researchers and scholars who want to know more about the impact of risk management on project performance. The study may serve as a starting point for researchers and enthusiasts to conduct further research in this field, in addition to the study's importance for decision-makers in society as an important source relied upon when making important decisions in the field of project management.
Study Objectives
The study aims to:
Define risk management
Risk methods
Define financial risk management
Risk management process stages
Financial risk management methods and stages
Define the concept of performance
Performance determinants
Types of performance
Research Problem
The main problem of this study revolves around answering the main question, "What is the impact of risk management on project performance?" Several sub-questions stem from it, as follows:
What is the definition of risk management?
What are risk methods?
What is the definition of financial risk management?
What are the stages of the risk management process?
What are the financial risk management methods and stages?
What is the definition of the concept of performance?
What are performance determinants?
What are the types of performance?