Manage Risk (7.0.P1)
Risk refers to future conditions or circumstances that exist outside of the control of the project team that will have an adverse impact on the project if they occur. Whereas an issue is a current problem that must be dealt with, a risk is a potential future problem that has not yet occurred.
A reactive project manager addresses issues when they occur. A proactive project manager addresses potential problems before they occur. This is the art of risk management.
High-level process flow
All projects have some degree of risk. Projects with a higher level of risk require more rigorous risk management. Although not all risks can be eliminated entirely, most can be anticipated and managed ahead of time.
The purpose of risk management is to identify the risk events for a project and then establish a Risk Management Plan to manage the risk event and minimize harm to the project. In the TenStep process, the initial risk management during the 1.0 Define the Work step. Additional risk identification should occur throughout the project.
7.1 Manage Risk / Process
7.2 Manage Risk / Techniques
7.3 Manage Risk / Quick Reference
Manage Risk / Example