Risk Identification
The team brainstorms and identifies potential risks in the project. These risks are outlined to all members of the team to allow for better risk management. When the team is aware of the possible risks, it will be able to better identify when the project is moving in a risky direction.
Risk Analysis
The project risk data or estimates are then analyzed in a way to help the team prioritize possible risks. When the risks are put in financial or numerical terms, the priority scale can be understood in qualitative and quantitative terms.
Risk Planning
The analysis and prioritization is then used to formulate strategy, plans and action. Each risk has an outlined plan with a strategy for action. With each risk assessed, the steps to resolve an issue is outlined and the team is ready for action.
Risk Tracking
The status of risks is tracked and documented in a specific action plan. The documentation allows for recognition of how the risk is occurring and how it can be exacerbated or alleviated.
Risk Control
Risk control is the action taken when risks are assessed. Risk planning is utilized when risks are in progress and the steps outlined in the planning are used and tracked to ensure risks are under control.
Risk Learning
The information gathered from outlining possible risks, defining how risks can be alleviated and how the risks were handled is compiled. The information is then put in usable terms to allow for learning. The data can be extracted and used at any level of the company for future projects or situations. This information can also be used to rate how effective the planning and execution was handled and identify weak areas.
