PMP - Project Risk Management
Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, response implementation, and monitoring risk on a project.
The objectives of project risk management are to increase the probability and/or impact of positive risks and to decrease the probability and/or impact of negative risks, in order to optimize the chances of project success.
The Project Risk Management processes are:
- Plan Risk Management-The process of defining how to conduct risk management activities for a project.
- Identify Risks-The process of identifying individual project risks as well as sources of overall project risk, and documenting their characteristics.
- Perform Qualitative Risk Analysis-The process of prioritizing individual project risks for further analysis or action by assessing their probability of occurrence and impact as well as other characteristics.
- Perform Quantitative Risk Analysis-The process of numerically analyzing the combined effect of identified individual project risks and other sources of uncertainty on overall project objectives.
- Plan Risk Responses-The process of developing options, selecting strategies, and agreeing on actions to address overall project risk exposure, as well as to treat individual project risks.
- Implement Risk Responses-The process of implementing agreed-upon risk response plans.
- Monitor Risks-The process of monitoring the implementation of agreed-upon risk response plans, tracking identified risks, identifying and analyzing new risks, and evaluating risk process effectiveness throughout the project.