Thanks for your interest in Project Risk Management (PMBOK®). You find the definition and the processes involved in Project Risk Management and free downloadable templates on this page.
The Project Risk Management Plan is a component of the Project Management Plan that describes how risk management activities will be structured and performed.
Definition of Project Risk Management
The PMI™ defines Project Risk Management as:
Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project. The objectives of project risk management are to increase the likelihood and impact of positive events, and decrease the likelihood and impact of negative events in the project. (PMBOK® Guide)
Project Risk Management Processes
The PMI™ defines the processes as follows:
- Plan Risk Management
- Plan risk management is the process of defining how to conduct risk management activities for a project.
- Identify Risks
- Identify risks is the process of identifying individual project risks as well as overall sources of project risk, and documenting their characteristics.
- Perform Qualitative Risk Analysis
- Perform qualitative risk analysis is 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
- Perform quantitative risk analysis is 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
- Plan risk responses is 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
- Implement risk responses is the process of applying agreed-upon risk response plans.
- Monitor Risks
- Monitor risks is 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.