What is the main purpose of risk assessment in project management?

The main purpose of risk assessment in project management is to identify and classify risks. This process involves systematically examining potential factors that could negatively impact the project's objectives, timelines, and overall success. By identifying these risks early on, project managers can categorize them based on their likelihood and potential impact, allowing for better preparation and mitigation strategies.

Understanding and classifying risks enables projects to proactively identify which risks require immediate attention and which may be monitored over time. It aids in developing contingency plans and ensures that the project stays on track to meet its goals, enhancing overall project performance and outcomes. Risk assessment is a crucial step that ultimately supports informed decision-making and prioritization of resources to address potential challenges effectively.