Research on the Importance of Project Pisk Management to Project Success

Abstract

A project is a one-time task that needs to be completed within a limited amount of resources and time. The nature of project management is to obtain the value of certainty by managing uncertainty. In helping customers to achieve current value, future value, at the same time, project management can realize company's financial value, business value, and the value of their own capabilities. Project risk management plays an extremely important role. However, the market environment is constantly changing, it is important for the successful delivery of the project if it can cope with various risks in the process of project implementation for the project team. Good project risk management can help to reduce the probability of decision errors, avoid losses, and increase the value of the enterprise. The focus of this study is to introduce the application of project risk management in project implementation by developing a conceptual framework. This theoretical research is carried out attempts to theorize the relationship between project risk management and project success. It is found that project risk management contributes to project management system in four aspects: identification, analysis, responsing and monitoring. These findings introduce the significant usage of it in the process of a project from inception to completion, as well as offer reference for other researchers on how to improve project risk management to promote the smooth realization of the project.