Risk Management Planning

Risk management planning requires recognizing, understanding, and addressing all potential risks through the course of a project. The risk management plan documents and plans this process and includes six steps: risk identification, risk assessment analysis, risk control, risk cost allocation, risk monitoring, and risk planning. First, risk identification identifies and categorizes the potential risks associated with a project. Second, risk analysis analyzes the risks qualitatively and quantitatively to identify those risks of high importance. Third, risk control applies various control strategies to maximize the project’s benefits and minimize losses. Fourth, the cost allocation process allocates the risks to the appropriate parties. Then a monitoring program tracks the progress of the project and its risks and updates the risk management plan whenever a new risk develops.