Risk Management: A Smart Skill for Everyday Projects

Risk management might sound a little intimidating at first, but it’s actually one of the most helpful—and even exciting—parts of running a project or business. Why? Because risks are part of everyday life. Some bring challenges, and others bring great opportunities. The key is learning how to handle both.

What Is Risk Management?

At its heart, risk management is about being prepared. It means looking ahead, thinking about what might go wrong or right, making a plan, and protecting the project’s success.

Most teams have a dedicated person for this role—a risk manager—who helps guide the team through any bumps in the road.

What Does Risk Management Involve?

Risk management includes:

• Identifying risks – the good (opportunities) and the bad (threats)

• Evaluating how likely they are and how much they could affect the project

• Making a plan to deal with those risks

• Taking action to reduce problems or take advantage of opportunities

• Keeping track of everything and making changes as needed

As stated in the PMBOK® Guide – Seventh Edition, a “risk management plan is a component of the project, program, or portfolio management plan that describes how risk management activities will be structured and performed” (Project Management Institute, 2021, p. 186).

In simple terms: the goal is more success, fewer setbacks.

It’s a Team Effort

Risk managers don’t work alone—they team up with everyone involved in the project. Some risks are:

• Accepted (you live with it)

• Avoided (you prevent it from happening)

• Reduced (you lessen the impact)

• Transferred (you hand it off, maybe to a legal team or insurance company)

And not all risks are bad! Positive risks—like a new chance to grow sales—can turn into big wins if planned for properly.

Why Team Input Matters

One of the smartest parts of risk management is listening to your team. The people doing the work often spot potential problems early or offer simple solutions. Including their feedback from the beginning can save time, money, and stress.

It’s also smart to include contingency planning—a backup plan in case something unexpected happens.

Why Learn Risk Management?

In a fast-changing world, knowing how to manage risk helps you stay calm, think clearly, and make smart choices. It’s a skill that can boost your confidence and help you grow your career—especially in jobs where things change often.

Want to learn more? Explore certificate and degree programs at your local community college or university. And if you want to go even further, consider earning the PMI Risk Management Professional (PMI-RMP) certification to strengthen your skills and stand out.

References

A Guide to the Project Management Body of Knowledge (PMBOK Guide) -- Seventh Edition and the Standard for Project Management. (2021). Newtown Square: Project Management Institute.

PMI Risk Management Professional (PMI-RMP)®. (2025, June 30). Retrieved from Project Management Institute: https://www.pmi.org/certifications/risk-management-rmp

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Meet Nikia Smith, the Project Management Consultant driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a Bachelor's Degree in Management and Organizational Leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com.