Monday, December 5, 2011

Project Risk Management Processes

Project Risk Management includes the following six project management processes:

  1. Plan Risk Management: This is the first step in project risk management. It includes defining how to conduct risk management activities for a project.

  2. Identify Risks: I would consider this as the most important process in the entire risk management. This is where you identify and determine which risks may affect the project and document their characteristics. The risk identification process must be comprehensive, as risks that have not been identified cannot be assessed or responses planned.

  3. Perform Qualitative Risk Analysis: In this process, we assess the likelihood/ probability of each risk occurring and the likely impact of the risk on project objectives. We follow this up with prioritizing the identified risks for further analysis or action by combining their probability of occurrence and impact/ severity.

  4. Perform Quantitative Risk Analysis: This process may or may not be included in all projects. Here, we numerically analyze the effect of prioritized risks on overall project objectives.

  5. Plan Risk Responses: Developing options and actions to enhance opportunities and to reduce threats to project objectives.

  6. Monitor and Control Risks: Implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

1 comment:

  1. cute blog and your explanation is best for Project Risk Management Processes.....
    Project Risk Management