All types of organizations face with the some forms of risks, which may affect their chance of success. Understanding the risks and effectively managing these will greatly help the organizations in achieving the long term success. Risk management can be an important tool to eliminate potential problem in an organization. As a project manager or team member, we have to manage risk on a daily basis; it’s one of the most important things to do.

1. International Conference on Survey Management Paper Call
13 Dec, 2018 - 31 Jan 2019
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RISK MANAGEMENT: ISSUES, CHALLENGESAND OPPORTUNITY
Ashim SHARMA1, Rohit GAUTAM2, Pashupati SHAH3
1,2,3
Department of Civil and Geomatics Engineering, Kathmandu University,
Dhulikhel, Nepal
ABSTRACT
Companies face a number of internal and external factors, which make it uncertain, whether the company will meet
its objectives. These uncertain events or conditions are called risks. It could lead to positive and negative results. Risk
management involves identifying, analyzing and responding to risk factors throughout life of a project. It is important
since it helps us to handle issues better and leads towards the success of a project. Therefore the aim of this conference
paper is to discuss about the topic of risk management in any project. This report will be analyzing the process, issues,
challenges of risk management and give recommendations as to what may be done to handle these challenges. For
this, desk study and literature review among the team members on risk management was done so that the fact and
figures about the risk management were analyzed which helped in preparing this report. For handling the risk in any
project efficiently, the five process of risk management are followed which are identifying, assessing and monitoring
the risk. There also comes the different challenges while managing the risk. Project managers should overcome these
to effectively layout the plan. So, understanding the risk and effectively managing these will greatly help the
organization in achieving the long term success.
Key words: Risk, Risk Management, Project, Project Manager
1. INTRODUCTION
All types of organizations face with the some forms of risks, which may affect their chance of
success. Understanding the risks and effectively managing these will greatly help the organizations
in achieving the long term success. Risk management can be an important tool to eliminate
potential problem in an organization.
So, risk is the uncertain future event or condition that might affect our project objectives. These
uncertain events could lead to positive or negative result. All the organizations attempt to avoid or
reduce the impact of negative risks. However, when it comes to the positive risks, organizations
would like to take maximum advantages of these opportunities. Risk management has become a
key organization practice; it is among the issues that have consistently been in the spotlight. Every
organization is striving to develop risk management policies that will enable it to handle issues
better and to develop a competitive advantage in their respective industries (Jastaniyah, 2017). In

2. International Conference on Survey Management Paper Call
13 Dec, 2018 - 31 Jan 2019
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the risk management, you identify the potential risks, then you assess them so that which of the
identified risks are more critical and which are less. Based on that assessment, you give more
priority to some risks and less to others.
Risk management is one of the ten knowledge areas in which a project manager must be competent
(PMBOK, 2018). Project risk management is the process of identifying, analyzing and then
responding to any risk that arises over the life cycle of a project to help the project remain on track
and meet its goal (Ray, 2017). It is important to understand that there is always going to be risk.
The overall goal in risk management is however to simply reduce or mitigate risk and then control
it.
2. AIM AND OBJECTIVES
The International Seminar on Survey Management 2018 aims to exchange and share experiences
and research results on different aspects of Survey Project Management. It also provides an
interdisciplinary platform for us to present and discuss the most recent innovations, trends, and
concerns encountered and solutions adopted in the fields of Survey Management.
The International Seminar on Survey Management 2018 aims to:
 To provide a platform to the academic researchers to exchange and share their experience
in Survey Management Process through presentation and IEEE Conference Paper.
 To highlight the issues, challenges, opportunities and solutions for the different project
management, survey management aspects, project planning, project and management
principles.

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3. MATERIALS/METHODS
Figure 1: Workflow for Report Preparation
We did desk study and literature review on risk management consulting various books, articles,
slides shared in slideshare and YouTube videos. All the findings from this desk study are secondary
information from other materials. Primary research was not carried out by ourselves. All the
materials used for report preparation are listed in the reference section.
3.1. PROCESS OF RISK MANAGEMENT
As a project manager or team member, we have to manage risk on a daily basis; it’s one of the
most important things to do (Kloosterman, 2014). If we learn how to apply a systematic risk
management process, and put into action the core five risk management process steps, then our
projects will run more smoothly and be a positive experience for everyone involved. All risk
management processes follow the same basic steps. Together these five risk management process
steps combine to deliver a simple and effective risk management process.
Topic
Discussion
Desk Study
Report
Investigation
Explore the
literature
Internet
Surfing
Analyzing fact
and figures
Preparation
of Report

4. International Conference on Survey Management Paper Call
13 Dec, 2018 - 31 Jan 2019
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Figure 2: Risk Management Process
Identify the Risk:
We need to understand what risk are present before we can put protective controls into place. The
process is known as Risk Identification. Managers can identify risks by viewing past trends, talking
to people at different levels/phases of projects, and by using brainstorming techniques when
considering various aspects of the project (Kumar, n.d.). Using a mind map help us visualize the
potential risks of a project and inspire more out-of-the-box thinking from team members.
Analyse the Risk:
During the risk identification step, a project manager may have identified many risks and it is often
not possible to try to address all those identified. The risk analysis step will assist in determining
which risks have a greater consequence or impact than others. It involves combining the possible
consequences, or impact, of an event with the likelihood of that event occurring. During this step,
team members will estimate the probability and fallout of each risk to decide where to focus first.
Identify
Analyze
EvaluatePlan
Monitor

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Evaluate the Risk:
Risk evaluation involves comparing the level of risk found during the analysis process with
previously established risk criteria, and deciding whether these risks require treatment. The result
of a risk evaluation is a prioritized list of risks that require further action. This step is about
deciding whether risks are acceptable or need treatment.
Treat the Risk:
During this step you assess your highest ranked risks and set out a plan to treat or modify these
risks to achieve acceptable risk levels. This step should also aim to enhance positive outcomes.
Monitor the Risk:
A project manager must monitor risks and review the effectiveness of the treatment plan, strategies
and management system that have been set up to effectively manage risk. By identifying and
managing a comprehensive list of project risks, unpleasant surprises and barriers can be reduced
and golden opportunities discovered (Kloosterman, 2014).
4. ISSUES, CHALLENGES AND OPPORTUNITIES
There are different issues and challenges involved with this process. Project Managers should
overcome these to effectively layout a plan.
a) Mismeasurement of known risks:
Risk managers sometimes make mistakes in assessing the probability or the size of losses
(Stulz, 2008). In many cases, big risk decisions are being made too low in organizations, with
people who aren’t incentivized to make the right decisions for the organization.
Mismeasurement of known risk is a common problem in risk management practice.
b) Failure to take known risks into account:
It is very difficult to consider all the risks in a risk measurement system, or it is costly to do
so. This is because nobody can forecast future events perfectly.

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c) Failure in communicating risks to top management:
Risk managers communicate information about the risk position of the firm to top management
and the board. The management and board use this information to determine the firm’s risk
strategy. If a risk manager is unable to communicate this information effectively, top
management may make decisions that are badly informed, or they may develop an
overoptimistic perception of the risk position of the firm (Stulz, 2008).
d) Failure in monitoring and managing risks:
It is challenging for risk managers to capture all the changes in the risk characteristics of
securities and to adjust their hedges accordingly. As a result, risk managers may fail to
adequately monitor risks simply because the risk characteristics of securities may change too
quickly to allow them to assess them and put on effective solutions.
A good project risk management plan allows managers to look at the entirety of their project
through the lens of what could go wrong. This, in turn, will help them to develop an alternatives
for a variety of budget, timing, or personnel issues. Here are benefits of developing a project
risk management plan:
 Effective use of resources
 Fewer shocks and failures
 Raised awareness of significant risks
 Enhancing communication
 Quick grasp of new opportunities
5. RESULTS AND DISCUSSION
In every project there is the chance of occurrence of risk during project duration time. If proper
risk management is not done, then it may hamper in completion of different project work. From
this paper we come up with proper risk management process. And we also discussed about
different issues, challenges and opportunity during the risk management process. And we

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concluded that risk management is important for the project to be completed in planned time and
budget.
6. CONCLUSION
This conference paper has discussed the various aspects of risk management in the project. The
most important part of this report is the process of risk management and how can we manage it.
Risk management helps us identify, manage and ultimately control risks. It helps us to reduce the
exposure once we understand what risks exist in the project. Very few risks will remain static,
therefore the risk management process needs to be regularly repeated, so that new risks are
captured in the process and effectively managed.
7. REFERENCES
Jastaniyah, A. A. (2017). Risk Management Problems: Risk Management Challenges in the
Financial Institutions. American Journal of Engineering Research (AJER), 34-39.
Kloosterman, V. (2014). Risk Management Online Course. Retrieved 01 20, 2019, from Online
CPD Courses: http://continuingprofessionaldevelopment.org/project-risk-management-
course/
Kumar, A. (n.d.). Basics of Risk Management: Tips, Tools, and Techniques. Retrieved from Project
Risk Management: https://www.brighthubpm.com/risk-management/71742-the-basics-
ofrisk-management/
PMBOK. (2018). PMBOK Guide| Project Management Institute. Retrieved 01 17, 2019, from
Project Management Institute: https://www.pmi.org/pmbok-guide-standards/foundational
Ray, S. (2017). The Risk Management Process in Project Management. Retrieved 01 16, 2019,
from PROJECTMANAGER: https://www.projectmanager.com/blog/risk-management-
processsteps
Stulz, R. M. (2008). Risk Management Failures: What Are They and When Do They Happen?
Journal of Applied Corporate Finance, 20(4), 58-67.

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Tohmatsu, D. T. (2009). Global Risk Management Survey: Risk management in the spotlight. pp.
1-40.
Jüttner U., Peck H., & Christopher M. (2003). Supply chain risk management: outlining an agenda
for future research. Int J Logist: Res Appl 6(4):197–210
Chapman, C., & Ward, S. C. (2003). Project risk management : processes, techniques and insights.
J. Wiley. Pridobljeno od http://www.wiley.co.uk