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Explain a five-stage process for project risk management.
The major stages in project risk management are as follows:
•Plan the approach: This approach is described that is suitable for the particular project and that will give sufficient control over project risk. The approach is documented within the Risk Management Plan (when there is a separate document) or like part of the Project/Quality Plan.
•Identify risks: The probable risks are known using people’s experience, debriefs through other projects and checklists. These risks are documented into the risk register risk log.
•Assess risks: Every risk is assessed in terms of its likelihood and scale of impact as well as urgency. These assessments are added to risk register.
•Plan risk responses: Actions are known to reduce the possibility of the risk occurring and/or to soften its impact when it does. An owner is allocated to take charge of the achievements. The planned responses are recorded into the risk register.
•Complete risk reduction: Confidently, the risk actions will have dealt along with the problems but the risk register should also be reviewed regularly to check which the actions have been successful and to classify any latest or changed risks. Modern risks are subjected to similar management process as defined above.
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