Before you start on the risk management process, you must have an understanding of some important things. Project risks generally as defined from the PMI perspective that is at their core and unknown events. These events can be positive or negative so that a word risk is inherently neutral. That said, most of the times are spent handling negative project risks, rather than the positive project risks and opportunities. You can also visit riskmate.uk website to get the best risk management software for your business.
Risk Management Process
The first step of the risk management process is to have every person involved in the planning procedure individually list at least seven potential risk things. Usually, with this step, team members will assume that some project risks are already known so that do not need to be listed.
But it still needs to be listed because even with the best practice management procedures in place, it could still occur and cause many problems on the project over time. So that it should be addressed rather than neglected.
In the second step of the project risk management process is to collect the lists of project risks and compile them into the single list with duplicates removed.
Third Step of the process is to assess the possibility, impact and the detectability of each risk on the list. This can be easily done by assigning every item on the list a rating such as on a scale or in a subjective term like high, medium, or low. Detectability is optional but it can be easy to evaluate – if a risk is difficult to understand then it is a riskier thing. If it’s easier to get early, such as loss of management support then it is a lower risk.
In the fourth step of the risk management process is to divide the planning team into subcategories and to give a portion of the master list to every subcategory.
In the next process is for those same subcategories to identify possible preventive activities for the threats and enhancement activities for the opportunities.