Question

Should risks that have low likelihood be ignored? Explain.

Answer 1

Risk management is a very useful tool to avoid potential future risks that can harm the organization or project in the future. Risks refer to an uncertain and potential problem if it happens will adversely affect the objectives of the project. It can be beneficial or damaging to the organization.

In order to assess the impact of risk one should consider a few factors. These factors are as follows:

Likelihood of happened, its impact, proximity, etc.

The risk with low impact or low likelihood does not need further action. There is a need to put it on the watchlist only.