Process Framework—Risk Analysis
Risk analysis is vital for successful risk management as it is the point where we plan how to deal with the risk. Analysis is to risk management as planning is to project management, if you will. Critical determinations must be made at this point:
How likely is the risk to trigger?
How significant is the impact if the risk triggers?
How easy is the risk to manage (capability and capacity)?
What is the right management approach?
If the wrong decisions and conclusions are made here, then not only can it result in the risk exposure being increased unnecessarily, it can also result in resources being committed ...