Steps in Project Risk Management

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Different steps in Project Risk Management? Explain.

Project Risk:-
    An uncertain event or condition that, if it occurs, has a positive or negative effect on the project objectives.

Project Risk Management:-
     The systematic process of identifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events.

Steps in Project Risk Management:-  (PIASMRE):-

1. Risk Planning
2. Identification
3. Assessment
4. Strategies
5. Monitoring and Control
6. Response
7. Evaluation

1. Risk Planning:- 

• Commits that adequate resources(time, people and technology) will be in place to properly plan for and manage the various risks of the IT project.
• Stakeholders must be committed to process of identifying, analyzing and responding to threats and opportunities. 
• Focuses on preparation.

2. Risk Identification:- 

• Identifies various risks to the project.
• threats and opportunities must be identified.
• true problem must be addressed and not just symptom.
• causes and effects to be understood for effective strategies/responses.

3. Risk Assessment:-

• Analyzing risk. 
• tells how to deal with project risks.
• qualitative and quantitative approaches should be used.

4. Risk strategies:- 

• How to deal with various project risks 
• Focuses on one of them:-

             Accept or ignore the risk
             Avoid the risk completely
             Reduce the likelihood or impact of the risk if it occurs.
             Transfer the risk to someone else.

5. Risk Monitoring and Control:-

• Risk owners should monitor the various risk triggers so that well-informed decisions and appropriate actions can take place.

6. Risk Response:-

• Risk owner must commit resources and take action once a risk threat or opportunity is made known. 
• This action normally follows the planned risk strategy.

7. Risk Evaluation:-

• Provides basis for lesson learned and lays foundation for identifying best practices.
• It influences how an organization will plan, prepare and commit to IT risk management
• Focuses on:- 

           How did we do?
           What can we do better next time?
           What lessons did we learn?
           What best practices can be incorporated in risk management processes?