Risk Assessment

Once the project risks have been identified and their causes and effects understood, the next step requires that we analyze these risks. Answers to two basic questions are required: What is the likelihood of a particular risk occurring? What is the impact on the project if it does occur? Risk assessment provides a basis for understanding how to deal with project risks. To answer the two questions, qualitative and quantitative approaches can be used. Assessing these risks helps the project manager and other stakeholders prioritize and formulate responses to those risks that provide the greatest threat or opportunity to the project. Because there is a cost associated with responding to a particular risk, risk management must function within the constraints of the project's available resources.

Seven steps for managing IT project risk

1) Risk Planning.

2) Risk Identification.

3) Risk Assessment.

4) Risk Strategies

5) Risk Monitoring and Control

6) Risk Response

7) Risk Evaluation.