Risk management is a process that includes other six sub processes which are
a) Risk Management Planning
b) Risk Identification
c) Qualitative Risk Analysis
d) Quantitative risk Analysis
e) Risk Response Planning
f) Risk Monitoring and Control
Risk Management Planning: A risk mitigation, monitoring, and management (RMMM) plan is produced.
Risk Identification: Finding the risk relevant to the project which may affect the project, this can be done through a preexisting checklist or through some subject assessment by the experts.
Risk Analysis: It consists of two parts first is qualitative. In qualitative analysis we prioritize risks for further analysis; this can be done by assessing probability of occurrence and impact. Second part of analysis is quantitative analysis where we talk objectively in terms of numerical output a risk can have on project objectives.
Risk Response Planning: Developing mitigation strategies for the risk which has to be addressed.
Risk Monitoring and Control: Keeps track of the identified risk status, looking for new risks, reviewing the mitigation atrategies results adapted for risks mitigation. There are two basic strategies for addressing the risk.
a) Reactive: Crisis management or fire fighting because the project stakeholders take a reactive approach or only address the project risks after they have become problems.
b) Proactive: Here comes Actual Risk Management. At best a reactive strategy monitors the project for likely risks.