Risk management process

Basic idea

Five steps, run continuously: Plan → Identify → Analyse/Assess → Respond → Monitor/Control. The first time through builds the RMP; subsequent passes keep it current.

Key formulas

• Prioritisation: $RE = P \cdot I$
• Response strategies: avoid, transfer, mitigate, accept.

Plan

• How to approach and plan risk management activities

  Identify

• Identify the possible risks

  Analyse and assess

• Identify the relative priorities of the identified risks

  Respond (Action)

• How can we reduce the likelihood or impact of risks?

  Monitor and control

• How can we detect the ongoing status of our risks? How can we control them effectively and efficiently?

Siblings

• Risk Management
• Risk Management Planning