It goes without saying that risk is probably the main cause of uncertainty in any project. Risks can not be ignored if we really mean attaining a successful outcome for our project. I believe good PMs are focused more on identifying risks and managing them before they affect the business – which is actually the basic definition of a formalized and balanced risk management. The reason behind this is simple and it is mandatory that we implement it – the ability to manage risk will help us to act with confidence on our decisions with the project and help us to steer away from problematic areas and when we hit one of those risks we will be able to recover much much faster.
Simply, formal risk management will give us executable options on how to deal with potential problems – and certainly a peace of mind
Without a formal risk management methodology a project manager cannot possibly define project objectives for the future reliably and it follows that if those objectives and the related tasks are planned without actually taking the risks into consideration (ie without a risk management plan), chances are that the project will certainly veer away from its planned target once any of these risks hit materialize.