10. Risk Management

How to identify areas of risk, how to quantify and quality them, and how to plan for them.

There are seven Risk Management processes that account for 82 inputs, tools, and outputs. 

Process Group Risk Management Processes
Initiating None
Planning Plan Risk Management
Identify Risks
Perform Qualitative Risk Analysis
Perform Quantitative Risk Analysis
Plan Risk Responses
Executing Implement Risk Responses
Monitoring & Controlling Monitor Risks
Closing None

Process Primary Outputs
Plan Risk Management Risk Management Plan
Identify Risks Risk Register, Risk Report
Perform Qualitative Risk Analysis No Key Outputs
Perform Quantitative Risk Analysis No Key Outputs
Plan Risk Reponses No Key Outputs
Implement Risk Responses Change Requests
Monitor Risks No Key Outputs

RISK

The meaning “risk” has three characteristics that should be understood:

  1. Risk is related to an uncertain event
  2. Risk may affect the project for good or bad. 
  3. There is a difference between Individual Project Risk and Overall Project Risk. An Individual risk threatens an objective while an Overall risk affects the success of the overall project.

The Risk approach needs to be tailored to fit with the factors that influence the project: Size of Project, Project Complexity, Inherent Project Risk, Project Methodology, Importance.