There are four stages to risk management planning:
- Risk Identification
- Risk Quantification
- Risk Response
- Risk Monitoring and Control
Risk Identification
There are different kinds of risk:
- business risks
- generic risks
Risks need to be identified and defined: what are their causes and will be their impact?
Risk quantification
Risks need to be quantified in two dimensions: impact and probability. Prioritization of risks can be done using a matrix that combines probability and impact.
Risk response
There are four things that can be done in response to risk:
- Avoid
- Transfer
- Mitigate
- Accept
A risk response plan should include a strategy and action items. This means a who, what, when, where, why plan needs to be developed.
Risk control
It's important to continually monitor the status of risks so that it will be known if they have turned into a problem. It's also important to keep track of the effectiveness of risk mitigation steps, and to follow risks so that it is known when they have passed and no longer represent danger.
From a White Paper by Project Perfect: http://bit.ly/cNOHvb
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