The process of analyzing the project outcomes and objectives due to risk or unwanted event occurrence.
Risk analysis is key to project management to avoid the surprises during progress and streamline the certainty of the project outcome.
This analysis is done to assess the quantitative and qualitative effects of outcome of project in case of occurrence in the
- What can happen is defined?
- How likely is it to happen?
- If it does happen what is the outcome?
The risk analysis is ineffective in case of unstructured approach which may lead to
- Incomplete impact evaluation
- Improper communication with a team.
The framework of risk management has key stages to be followed
- Risk Identification
- Risk Evaluation
- Risk management
- Risk controlling
Once the possible risks are identified and defined in the risk register which includes
- Risk source
- Risk category
- Probability of risk occurrence
- Risk impact in terms of cost, scope, resource, time and quality
- Risk occurrence time frame defines the possible stage for risk occurrence
- Risk response planning