Risk management is the process of identifying and mitigating risks that may have a positive or negative impact on a project. It includes risk management planning, identification, analysis, response planning, and monitoring and control. Risk affects key aspects of projects like budget, schedule, scope, and quality. Conducting risk management makes projects more likely to have positive outcomes and less likely to experience negative events by prioritizing risks, analyzing them, and planning and implementing risk responses. Project managers use risk management techniques throughout the project life cycle to systematically manage potential threats and opportunities.