Project Management: Achieving Competitive Advantage, Fifth Edition

Risk Management: A Four-Stage Process

1. LO 7.2 Recognize the four key stages in project risk management and the steps necessary to manage risk.

Systematic risk management comprises four distinct steps:

• Risk identification—the process of determining the specific risk factors that can reasonably be expected to affect your project.

• Analysis of probability and consequences—the potential impact of these risk factors, determined by how likely they are to occur and the effect they would have on the project if they did occur.

• Risk mitigation strategies—steps taken to minimize the potential impact of those risk factors deemed sufficiently threatening to the project.

• Control and documentation—creating a knowledge base for future projects based on lessons ...