Project Risk Management includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project; most of these processes are updated throughout the project. | Chapter 11 Project Risk Management Project Risk Management includes the processes concerned with conducting risk management planning identification analysis responses and monitoring and control on a project most of these processes are updated throughout the project. The objectives of Project Risk Management are to increase the probability and impact of positive events and decrease the probability and impact of events adverse to the project. Figure 11-1 provides an overview of the Project Risk Management processes and Figure 11-2 provides a process flow diagram of those processes and their inputs outputs and other related Knowledge Area processes. The Project Risk Management processes include the following Risk Management Planning - deciding how to approach plan and execute the risk management activities for a project. Risk Identification - determining which risks might affect the project and documenting their characteristics. Qualitative Risk Analysis - prioritizing risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact. Quantitative Risk Analysis - numerically analyzing the effect on overall project objectives of identified risks. Risk Response Planning - developing options and actions to enhance opportunities and to reduce threats to project objectives. Risk Monitoring and Control - tracking identified risks monitoring residual risks identifying new risks executing risk response plans and evaluating their effectiveness throughout the project life cycle. These processes interact with each other and with the processes in the other Knowledge Areas as well. Each process can involve effort from one or more persons or groups of persons based on the needs of the project. Each process occurs at least once in every project and occurs in one or more project phases if the project is divided into phases. Although the processes are presented here as discrete elements with well-defined
