Risk management is the systematic process of identifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events to project objectives. -PMBOK Guide
RISK MANAGEMENT PROCESS
● 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 documenting their characteristics.
● Qualitative Risk Analysis – Performing an 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 to the project’s objectives.
● Risk Monitoring and control – is the process of keeping track of the identified risks, monitoring residual risk and identifying new risks, ensuring the execution of risk plans, and evaluating their effectiveness in reducing risk.