Risk Principles

Risk is the chance, great or small, that damage or an adverse outcome will occur from a particular hazard. There are some essential elements that need to be in place in a project if risk management is to be effective and innovation encouraged, i.e. that:

• The Project Board supports and promotes risk management, understands and accepts the time and resource implications of any countermeasures
• Risk management policies and the benefits of effective risk management are clearly communicated to all staff
• A consistent approach to risk management is fully embedded in the project management processes
• Management of risks is an essential contribution to the achievement of business objectives
• Risks through working with programmes and other projects are assessed and managed
• There is a clear structure to the risk process so that each element or level of risk identification fits into an overall structure
• Where the project is part of a programme, changes in the state of any project risks that are also identified as programme risks must be flagged to programme management or the designated risk management function in the programme.