The document discusses project risk management processes and their importance. It defines project risk management as involving identification, analysis and response to project risks. The key project risk management processes are risk identification, risk quantification, risk response development, and risk response control. These help manage threats and opportunities throughout the project lifecycle. Effective risk management can significantly reduce project problems and failures.

2. Risk quantification

3. Risk response development

4. Risk response control

5. These processes are often implemented with different names though they all arrive and achieve the same goal. Also they are often renamed and combined as stated below: -Risk identification and quantification are often treated as a single process and the resultant process is called “risk analysis” or risk assessment. Risk response development is also often referred to as “” risk response planning and risk response development often referred to as “risk management”.

6. Whether they are referred to individually or collectively, they usually maintain their requirements, tools and output. A proper analysis of these processes is stated below.

7. RISK IDENTIFICATION: - involves the identification and determination of the possible risks that are more likely to affect the project and properly documenting the properties and effect of each one. This process is not a “once in a project” affair. It is meant to be carried out regularly as long as the project is being carried out. It should also include both internal (activities that can be controlled or influenced by the project team such as cost estimation) and external (risks beyond the project team’s control such as business laws or government action) risk. Risk identification could be achieved by either identifying “causes and effects” (events likely to occur and what will be the result) or “effects and causes” (outcomes to be avoided or appreciated and method of occurrence).

8. For proper risk identification, the following inputs, tools / techniques and output are required: -

9. INPUTSTOOLS & TECHNIQUES OUTPUTSProduct descriptionChecklistsSources of riskOther planning outputs (work breakdown structure), staff plan etc.FlowchartsPotential risk eventsHistorical informationinterviewsRisk symptomsCost and time estimationInput to other processes

10. RISK QUANTIFICATION: - this step involves evaluation of the risks identified in the first step and risk interactions to assess the range of possible project outcomes. Its primary aim is to determine which risks need response. It is complicated and affected by a number of factors but is not limited to them. They include: -

11. Threats and opportunities can interact in unforeseen ways such as regular delays could cause consideration of a new strategy thereby reducing total project duration.

12. A single risk could trigger multiple effects such as: - a late delivery of a vital part of the project could result in penalty (fines and payments), over run cost, delay in schedule and often a poor quality product.

13. Reduced cost may favor a stakeholder at the expense of the other. (opportunity for one, loss for the other).

14. Mathematical principles used may create a false impression and negatively affect reliability and precision.

16. Mitigation which deals with reducing the expected cost of a risk event by reducing the occurrence probability, buying insurance and using proven technology.

17. Acceptance which deals with acknowledging the occurrence of a risk and developing a plan to tackle the risk in cases when it occurs.

19. INPUTSTOOLS & TECHNIQUESOUTPUTSRisk management planWorkaroundsCorrective actionsDefinite risk eventsExtra risk response developmentUpdates to the project risk management planAdditional project risk identification

20. After a clear definition of all the activities project risk management entails, it is best to have a “step-by-step” approach for proper execution of all involved activities as a (PROJECT RISK MANAGEMENT).

21. PROJECT RISK MANAGEMENT PROCESS.Vicky Wrona again outlined a possible “7 step” outline as a project risk management process. They are: - Step 1: - this step states that everyone involved in the project planning process should list at least 10 possible risk items. This also helps tackle assumption because some risks that are believed to be known are often neglected and they end up occurring. Scope creep is a perfect example because even with a perfect management process, it could still arise and cause problems. It is best to tackle it rather than ignore it. Step 2:- involves collection of all the listed risks and compiling them into a single list (master list) with duplicates removed.Step 3: - assessment of the probability and impact of the risks outlined in the master list is the third step. This can be achieved by giving each risk a rating (numerically) or otherwise in order of vulnerability (low, medium, high). Detectability is also important because risks that are not detected or hard to detect e.g. scope creep are even more risky. tep 4: - <br />