In project management, risks are part of the issues which are most critical but often overlooked if a project is to be completed successfully. Risks usually derail plans and make people to divert focus from significant project activities. Risks are overlooked because project managers tend to make assumptions based on past experiences, and think that the current project will go through the same conditions. Project risks are generally known before the project begins and they can occur at a specific period of the project, or last throughout the project period. Unlike crisis, management, a possible risk may be ignored since there is no immediate risk that is posed and any obvious dangers to successful completion are unforeseen. A crisis generates intense interest from the whole project team and is often followed by rewards from the management compared to successful risk management.
On the contrary, effective risk management leads to fewer problems and if lesser difficulties exist, there will be more expeditious resolutions. Outsiders cannot easily understand if risk management or the lack of it enhanced efficient and effective development of a new system, but project teams knows that their projects became successful as a result of good management of risks. Moreover, a risk may be ignored if professionals and team leaders are not dedicated and talented, implying that the leadership skills of a manager are wanting. Failing to clearly dissect the phases of a project, evaluate the future needs and requirements, and assign specific roles and duties to different members exposes a project to a myriad of risks. in addition, failing to provide for finances to counter future risks due to the fact that resources are hard to come by makes the smooth running of a project a dream..