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Therefore, this literature review discusses approaches pertaining to risks assessments in projects. Numerous scholars have examined various methods of assessing risks in projects. As such, the topic of methods of risk assessment is well presented. The authors selected by this study present imperative publication that can help one explain the subject of risk assessment comprehensively.
Risk virtually refers to the possibility of loss, disadvantage, destruction or injury that may accompany a project. Risk assessment entails identifying a qualitative and quantitative cost of risks associated with the situation. The quantitative aspect examines the magnitude of the probable loss and the chances that the risk will occur. Risk assessment should be an evolving and learning practice, capable of adjusting to novel and dynamic demands of the project.
According to McManus (2004), an ideal risk management plan should employ tactical procedures, methodologies and tools effective for predicting all probable risks accurately. Ideally, studies argue that the risk management refers to a concept of identifying risk, examining the risk and outline policies or approaches for lightening the risk. Ammar, Kayis and Amornsawadwatana (2012) state that risk assessments approach should involve analyzing the experiences of successful projects and engaging reliable professionals and analysts in the field.
Methods of analyzing risks vary with the industries and the purpose of the assessment. An analysis may have a financial purpose, environmental or healthy impacts purpose. Studies have identified numerous methods of assessing risks. Risk assessment methods can be grouped into three broad categories: the qualitative, semi-quantitative, and quantitative (McManus 2004, p. 23).
According to Wysocki (2012), qualitative assessments enable one to identify assents of priority and classify one that demands simple and rapid evaluation. The method is applicable often in situations
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