1. Risk management involves identifying risks, prioritizing them based on probability and impact, and developing strategies to address high priority risks. 2. Key steps include assigning risks to owners, monitoring risks, developing risk management plans to avoid, transfer, mitigate or accept risks, and deriving safeguards. 3. Risk identification considers technical, cost, schedule, environmental and other risks, and prioritization is based on the probability of occurrence and potential impact on the project.

1. Risk Management:
Identification of Risk and Prioritize the Risk is called Risk Management.
Phases of Risk Management
1. Risk Identification and Prioritize the Risk
2. Management of Risk
Process of Risk Management
1. Assign Risk to owner
2. Risk Paining
3. Risk Monitoring
4. Derive Safe guards
Risk Identification and Prioritize the Risk
Identification of Risk:
The Risk in a project may be in the form of Technical, Cost, Schedule, Client, Contractual, Weather,
Finance, Political, Environmental, People etc.
So, First of all we need to analyze weather the identified thing is a Risk we will face now a days or in
coming future in project Management. Example:
Let suppose we are running a project of IT in for a high security company. And we have identified two
things.
1. There is no resilience or failover for our servers.
2. An outage is informed by Power Company for half an hour tomorrow but we have a UPS which
may keep alive our servers for two hours in case of any outage.
So, first identification is really a Risk as we don’t have any resilience or failover servers in case of any
unexpected catastrophic or disastrous situation.
But
2nd
identification is not a Risk as we have Backup power supply in like UPS which will Keep Alive our
Servers for two hours.
Prioritize the Risk:
By keeping view the severity of Risk we assign the priority to Risk. The severity of risk is very important
to assign a priority of Risk.
How we will know severity of risk?
There are two ways to know if the risk is sever or not.
 Probability chance of occurrence.
 Impact.

2. Probability chance of occurrence:
Very Expected: Means we are sure that we will meet this Risk. Example in case of any latency to
start the project from due date the project cost will increase. Because the material prices will hike.
Expected: Means we expect that in a specific phase of the project we will face this Risk. Example at
the last stage of project implementation we may expect that funds are running out.
Possible: Means we see possibility that we will meet this risk. Example in worst weather conditions
the implementation team will reduce its working capabilities in field work.
Unexpected/doubtful: Means we are not sure sometimes a specific condition will cause for risk
sometimes not during project implementation. Example if there will be more foggy days in coming
week then we will have latency from Logistic Support to get material on project sight.
Very Unexpected: Means we meet with a risk which is very unexpected. Example Natural disasters.
Now we will See Impact of Risk:
Negligible: Means if the Risk will not leave any affect on a project.
Minor: Means if the Risk will leave very little affect on the project.
Moderate: Means if The Risk will leave the affect but that can be easily bearable.
Significant: Means if The Risk will leave a serious affect and cause for notable losses on project.
Severe: Means if the Risk disrupt the whole project and zero percent chance to comeback.
Process of Risk Management

3. 1. Assign Risk to owner
2. Risk Paining
3. Risk Monitoring
4. Derive Safe guards
Assign Risk to owner:
Once the Risk is identified and also prioritized by keeping view its severity, Now it is
most important to Assign the Key Person who will responsible to Track and record the progress to
resolve the risk
Risk Monitoring:
The Risk Owner will monitor the Risk by:
 Planning the Risk
 Seeing continuously the impact of risk on project
 Setting up meetings with team or subcontractor to record for history data and its resolving.
Risk Paining:
A Risk Management Plain is designed to eliminate or minimize the impact of risks.
Type of Risk Paining:
1. Negative Risk Management Strategies
 Avoid A Risk
 Transfer a Risk
 Mitigate a Risk
 Accept a Risk
2. Positive Risk Management Strategies
 Exploit a Risk
 Share a Risk
 Enhance a Risk
Negative Risk Management Strategies:
Avoid a Risk:
To eliminate or avoid the Risk Project Manager change or isolate the objectives which may
cause for trouble. He may do several things like
 Collect the history data about how that risk was eliminated in past
 Improve the communication between stakeholders
 Reschedule or Change the scope of project etc.
Transfer a Risk:

4. Shift the Risk to a 3rd Party. For Example
 Involve the insurance company to pay for losses.
 Let Vendor or ownership handle the Risk.
 Let involve the Banks and take loan in case of shortage of project funds ect.
Mitigate a Risk:
This mitigation reduces or minimizes the impact of risk on a project.
 Take an earlier Action to reduce the impact of Risk
 Fix or Repair the Damages
 Develop a prototype to measure the level of Risk
 Try for Free Products and Services.
Accept a Risk:
If there is no chance to avoid the risk or there is no any strategy to avoid it then we accept
the Risk. There are two types of Risk Acceptance
 Passive Acceptance:
 Document a Risk with no action and write the detail of Risk as possible as.
 Leave the Team to deal the Risks as they occur
 Active Acceptance
 Design a Plain to Recover the Loss of Time, Money, and Resources etc
Positive Risk Management Strategies
Exploit the Risk:
Increase the chance of positive Risk happening and In case of happening of Risk adopt or
implement very intelligent strategies like
 During Costing of a project add the percentage of Risk in cost product/Services
 Add the Budget or Finance in Project Fund
Enhance The Risk:
Increase the chance of positive Risk happening and identify the various Risk activities like
 Adding Resource to complete a project before time.
Share A Risk:
If a project team is not technically capable Project Manager higher subcontractor or Partner
Company to implement the project. Like
 We are a Telecom company and we need also civil work in the project
so Project Manager will hire a Partner Company to do the civil work
for this project.

5. Derive Safe guards:
If the risk is expected in coming future the Risk Manager will implement some
strategies by which he can eliminate/minimize impact of the Risk. Example during final testing or
commissioning of project the subcontract should be involved to avoid any kind of inconvenience.