Decreased Risk: The likelihood of an unwanted event occurring and the severity of its impact are described as risk. It is important to assess risks and develop mitigation plans; else they can cost the company money, resources and time.
Risk management is built into project management and is the process of identifying, analyzing and mitigating project risks allowing project managers to foresee potential risks and develop plans to combat them. This reduces the time spent in resolving the problem if it transpires as well as containing the resultant damage. Risk management consists of risk identification and prioritization. This is followed by a risk reduction plan which outlines the organizational response to the risk if it occurs and delegates the responsibility for dealing with it to a team member.
Improved Product Quality:
A product quality improvement is usually why new projects are undertaken as quality products are more reliable and create and retain customers for a business. Project management involves planning and developing the product as per the objectives identified, testing it to ensure that it meets the required performance levels and releasing the product in a timely and systematic manner. A popular project management method famous for its focus on product quality is Six Sigma which increases satisfaction by eliminating defects in the product. Project management makes quality improvement a goal, breaks it down into smaller, achievable deliverables and milestones and tackles each deliverable independently, thus increasing the likelihood of improved quality.