5 Stages of Project Risk Management Process
The Project Risk Management Process is a high-level process that includes five main sub-phases.: risk management planning, risk identification, quantitative risk analysis, qualitative risk analysis, and risk response planning.
#1 RISK MANAGEMENT PLANNING
Risk management planning as part of the project risk management process has to do with the process of analyzing the entire project and predicting some of the challenges that will be faced when the project eventually commences, It allows the project manager to plan ahead so that these high risks can be mitigated as the project progresses.
#2 RISK IDENTIFICATION
After the Project Manager might have identified the major task ahead of him in terms of planning the project, he has to identify some of the major risks for the project. The Project Manager must look at each of the risks in terms of impact and probability that such risk would happen.
#3 QUALITATIVE RISK ANALYSIS
When a Project Manager performs qualitative risk analysis, he is trying to look at the impact of that impact risk on the entire project, Performing qualitative analysis will allow the Project Manager to know the level of importance that he should attach to a particular project.
#4 QUANTITATIVE RISK ANALYSIS
When it comes to quantitative risk analysis as part of the risk management process, the project manager is more concerned about the figures attached to those risks. The Project Manager might analyse risk and discover that he will need an additional $5,000 to tackle a particular risk.
He might also discover that such risk will increase his project finishing date by one week.
#5 RISK RESPONSE PLANNING
The last part of a project risk management process is project risk response planning. The Project Manager, after having analysed risk based on probability and impact need to plan how he is going to respond to each of the risk identified for the project. He needs to identify risk owners and appoint an individual that will be on the look-out for those risks.
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