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A risk management plan is a document to foresee risks, estimate impacts, and define responses to risks. It also contains a risk assessment matrix.According to the Project Management Institute, a risk management plan is a "component of the project, program, or portfolio management plan that describes how risk management activities will be structured and performed".
There are various important ERM frameworks, each of which describes an approach for identifying, analyzing, responding to, and monitoring risks and opportunities, within the internal and external environment facing the enterprise. Management selects a risk response strategy for specific risks identified and analyzed, which may include:
Plan Risk Responses – developing options, selecting strategies and actions. Implement Risk Responses – implementing agreed-upon risk response plans. In the 4th Ed. of PMBoK, this process was included as an activity in the Monitor and Control process, but was later separated as a distinct process in PMBoK 6th Ed.
The risk management process usually occurs in five distinct steps: plan risk management, risk identification, qualitative and quantitative risk analysis, risk response planning, and risk monitoring and control. The central point of risk identification and assessment in risk management is understanding the risk.
Risk assessment determines possible mishaps, their likelihood and consequences, and the tolerances for such events. [1] The results of this process may be expressed in a quantitative or qualitative fashion. Risk assessment is an inherent part of a broader risk management strategy to help reduce any potential risk-related consequences. [1] [2]
A Risk register plots the impact of a given risk over of its probability. The presented example deals with some issues which can arise on a usual Saturday-night party.. A risk register is a document used as a risk management tool and to fulfill regulatory compliance acting as a repository [1] for all risks identified and includes additional information [1] about each risk, e.g., nature of the ...
There are a number of strategies that can be employed as one measure of defense or in a combination of multiple strategies together. A risk assessment is an important tool that should be incorporated in the process of identifying and determining the threats and vulnerabilities that could potentially impact resources and assets to help manage risk.
Risk is the lack of certainty about the outcome of making a particular choice. Statistically, the level of downside risk can be calculated as the product of the probability that harm occurs (e.g., that an accident happens) multiplied by the severity of that harm (i.e., the average amount of harm or more conservatively the maximum credible amount of harm).