Workflow of risk management
- Plan for risk management
- Identify risks and prepare the risk register
- Define the probability and the impact for each risk item
- Perform qualitative risk analysis
- Perform quantitative risk analysis
- Define risk response actions
- Define contingency actions
- Monitor and control risks throughout the project
Qualitative risk analysis is based on rating each risk item based on their probability and impact. Probability and Impact scales can be .1 to 1 or from 1 to 5. Each organization can define them according to their needs. Once the probabilities and impacts are decided for each risk item, they are ranked based on Probability x Impact (PI).
The most commonly used tool for risk monitoring and control is the risk rating matrix.