Project Management

Risk Management

last edited by: Peter Wootton on Apr 22, 2024 6:41 AM login/register to edit this page


The risk management plan referred to in the PMBoK is the beginning of managing risk. The work that is done within a manufacturing process for example is also governed by Operational Risk Management. This is a process that begins in the planning phase of a project and continues throughout project execution and ends with the project close out.

a. The Risk Management process should be governed by three basic rules:

(1) Integrate risk management into project planning, preparedness, and execution. (2) Make risk decisions at the proper level in the project. (3) Accept no unnecessary risks.

b. Risk Analysis compares severity and probability of the hazard occurring.

c. Risk Management takes the risk analysis process and expands it to identify control measures, determine residual risk, and obtain risk approval.

d. Standard terms to be familiar with for project management are: Operational Risk Levels, severity, probability, risk acceptance and approval authority.

External Links:

Operational Risk Management Wikipedia Page


last edited by: Peter Wootton on Apr 22, 2024 6:41 AM login/register to edit this page


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