This document outlines the key steps in risk management: identify risks, analyze and prioritize risks based on potential damage and likelihood of occurrence, develop response plans to mitigate risks, establish reserves to account for known and unknown risks, and continuously monitor and adjust risk strategies as a project progresses. It also notes that effective risk identification requires a critical attitude and consideration of all possible problems based on the assumption that anything that can go wrong, will go wrong.

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6. Defining Risk Management
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8. Analyze & Prioritize
Identify Risk
Establish Reserves
Develop Response Plans
Continuous Risk Management
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9. Identify Risks
Systematically find all the factors that
threaten project objectives
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10. Analyze & Prioritize
Assess each risk in terms of its
possible damage and likelihood of
occurrence. Most projects have an
enormous number of potential risks.
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11. Develop a Response
Create strategies for reducing the
possible damage or the probability
that the risk will occur
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12. Establish Reserves
Set aside additional funding for the
project that will be used in case of
specific risks- the known risks- occur,
as well as funding for the unknown
risks
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13. Continuous Risk Management
Implement the strategies and monitor
the effects of these changes on the
project. Risk strategies may require
fine-tuning as they are put into effect.
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14. Murphy's risk
management law
The art of identifying risks begins with a
critical attitude. Because we're trying
to find problems before they emerge,
it's appropriate that "anything that can
go wrong will go wrong".
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