Risk management processes:

1. Plan risk management
2. Identify risks: Risk register is maintained. It contains the list of risks and the potential responses.
3. Perform qualitative analysis
4. Perform quantitative analysis
5. Plan risk responses
6. Monitor and control risks

Risks can give positive (opportunity to project) or negative (threat to project) results. Risks can be found throughout the project life cycle. Risks are visible towards the end of the project when it is difficult to change anything.

Types of risk:

1. Schedule
2. Cost
3. Scope
4. Team Morale

Probability, Impact and causes help in risk analysis. Risks may be low, high or medium and may impact schedule, cost, scope and quality. There are many specific risks apart from the general ones. We need the cause to mitigate it. There are risks which are known and some are unknown.  The inputs to the risk management are the following: Project scope, cost, schedule, communication management plan, enterprise environmental factors(Risk tolerance) , and organizational process assets(Risk categories, risk statement formats, roles and responsibilities, authority levels for decision making, lessons learnt, stakeholder registers). The technique used is planning meetings and analysis.

Risk tolerance determines the risk planning. Risk Impact is the amount of danger or opportunity the risk event poses to a project. Risk probability is the likelihood that an event will occur. It is expressed in terms of cardinal (0 to 1) or ordinal (low – high) scales. Risk Impact can be expressed in cardinal scale. Probability and impact matrix is used for the risk planning process.

Risk management plan has the following sections:

1. Reporting formats and tracking
2. Risk categories
3. Methodology
4. Roles and responsibility
5. Budgeting and timing