Steps of Risk Management Process (original) (raw)

Last Updated : 12 Jul, 2025

Risk Management is an important part of project planning activities. It involves identifying and estimating the probability of risks with their order of impact on the project.

**Risk Management Steps:
Some steps need to be followed to reduce risk. These steps are as follows:

**1. Risk Identification:
Risk identification involves brainstorming activities. It also involves the preparation of a risk list. Brainstorming is a group discussion technique where all the stakeholders meet together. This technique produces new ideas and promotes creative thinking.
Preparation of a risk list involves the identification of risks that are occurring continuously in previous software projects.

**2. Risk Analysis and Prioritization:
It is a process that consists of the following steps:

Identifying the problems causing risk in projects
Identifying the probability of occurrence of the problem
Identifying the impact of the problem
Assigning values to step 2 and step 3 in the range of 1 to 10
Calculate the risk exposure factor which is the product of values of Step 2 and Step 3
Prepare a table consisting of all the values and order risk based on risk exposure factor

For example,

**TABLE (Required)

Risk No	Problem	Probability of occurrence of problem	Impact of problem	Risk exposure	Priority
R1	Issue of incorrect password	2	2	4	10
R2	Testing reveals a lot of defects	1	9	9	7
R3	The design is not robust	2	7	14	5

**3. Risk Avoidance and Mitigation:
The purpose of this technique is to eliminate the occurrence of risks. so the method to avoid risks is to reduce the scope of projects by removing non-essential requirements.

**4. Risk Monitoring:
In this technique, the risk is monitored continuously by reevaluating the risks, the impact of risk, and the probability of occurrence of the risk.
This ensures that:

Risk has been reduced
New risks are discovered
The impact and magnitude of risk are measured