An example risk management process:

  • Risk identification: list potential risks Estimation risks, organisation risks, people risks, requirements risks, technology risks, tools risks.
  • Risk analysis: prioritised list of risks
    • Probability of risk: qualitative label assessing the likeliness of something happening; insignificant, low, moderate, high, very high.
    • Effect of risk: qualitative label assessing impact; insignificant, tolerable, serious, catastrophic.
  • Risk planning: risk avoidance & contingency plans
    • Risk acceptance: no action.
    • Risk prevention: upfront action to stop risk arising.
    • Risk reduction: upfront action to reduce probability / impact of risk.
    • Risk transfer: transfer risk to someone else.
    • Contingency planning: no upfront action, plan response in case risk arises.
  • Risk monitoring: risk assessment