My view on Risk

(click to enlarge)

All risks are conceived at the start of a project, you will never identify them all and the majority will not occur - but the more effort you put into managing risk the greater probability of project success.......is this a true statement?

• Does a project with an effective risk management process in place have any more or less risks then a project without? no.....
• Does the cost assoc. with risk management provide for greater project value? no.....(it may reduce project cost OR identify what the project costs will be)

So - risk management does not reduce risks or increase benefit - it reduces costs (potentially) - so to have an effective risk management process, one needs to understand the cost of that process and ensure it does not exceed the potential costs of the risks being mitigated.
Effective Risk Management is when:
(risk management costs) + (mitigation plan costs) + (costs of risks that have impacted) < (costs that would have impacted without risk management and mitigation plan costs)....I think