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The Risk Management Process Is Made Up Of 6 Central Steps And 2 Myosin Steps Essay

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i. The Risk Management Process is made up of 6 central steps and 2 capillary steps. These are:
Step 1: Establish the context.
Step 2: Risk Identification.
Step 3: Risk Analysis.
Step 4: Risk Evaluation.
Step 5: Risk Treatment.
Step 6: Contingency Planning.
Capillary Step 7: Communication & Consultation.
Capillary Step 8: Monitoring and Review.
Step 1: Establish the context.
This is the stage where the risk management plan is established with intentions on explaining how it is going to manage risk. It describes the management components, the approach, and the resources used to manage risk. Typical management components include procedure, practices, responsibilities and activities (including their sequence and timing).
Step 2: Risk Identification.
This is a process that involves finding, recognizing, and describing the risked that could affect the objectives of a project. It is used to identify possible sources, events or circumstances that could affect the project’s objectives. To identify risks, you could use historical data, theoretical analysis, informed opinions, expert advice and stakeholder input.
Step 3: Risk Analysis.
The process used to understand the nature, sources, and causes of the risks that have been identified and to estimate the level of risk. It can also be used to study the impacts and consequences and to examine the controls that currently exist. How detailed your risk analysis ought to be depends on the risk, the purpose of the analysis, the
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