Plan Risk Management : Process of identifying how to conduct risk management activities for a project.
Identify Risks: Process of determining which risks may affect the project and documenting their characteristics.
Perform Qualitative Risk Analysis: Process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact
Perform Quantitative Risk Analysis: Process of numerically analyzing the effect of identified risks on overall project objectives.
Plan Risk Responses: Process of developing options and actions to enhance opportunities and to reduce threats to project objectives.
Control Risks: Process of implementing risk response plans,tracking identifying risks,monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.
Known risks that cannot be managed proactively, should be assigned a Contingency reserve.
Unknown risks cannot be managed proactively and therefore may be assigned a Management reserve.
A negative project risk that has occurred is considered an issue.
A risk appetite -> degree of uncertainty an entity is willing to take on in anticipation of a reward.
Risk tolerance -> degree, amount, or volume of risk that an organization or individual can withstand
Risk threshold -> measures along the line of uncertainty or the level of impact at which a stakeholder may have a specific interest. Below that risk threshold, the organization will accept the risk. above will not tolerate the risk.
Positive and negative risks are commonly referred to as Opportunities and Threats.