Phases of risk management
Risk management is the process of identifying and evaluating potential risks and issues that could impact your project. Risk management is an ongoing practice throughout the life cycle of your project. It typically involves some variation of these five steps:
- Identify the risk.
- Analyze the risk.
- Evaluate the risk.
- Treat the risk.
- Monitor and control the risk.
Let’s break these down
1. Identify the risk. The first phase of the risk management process is to identify and define potential project risks with your team. After all, you can only manage risks if you know what they are.
2. Analyze the risk. After identifying the risks, determine their likelihood and potential impact to your project. Serious risks with a high probability of occurring pose the greatest threat.
3. Evaluate the risk. Next, use the results of your risk analysis to determine which risks to prioritize.
4. Treat the risk. During this phase, make a plan for how to treat and manage each risk. You might choose to ignore minor risks, but serious risks need detailed mitigation plans.
5. Monitor and control the risk. Finally, assign team members to monitor, track, and mitigate risks if the need arises.
