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Risk Management

Risk management is the systematic process of identifying, analysing, and responding to project risks. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events to project objectives. It includes:

  • Risk management planning – deciding how to approach and plan the risk management activities for a project.
  • Risk identification – determining which risks might affect the project and document their characteristics.
  • Qualitative risk analysis – performing a qualitative analysis of risks and conditions to prioritize their effects on project objectives.
  • Quantitative risk analysis – measuring the probability and consequences of risks and estimating their implications for project objectives.
  • Risk response planning – developing procedures and techniques to enhance opportunities and reduce threats from risks to the project’s objectives.
  • Risk monitoring and control – monitoring residual risks, identifying new risks, executing risk reduction plans, and evaluating their effectiveness throughout the project life cycle.