Managing risks in the PROJECT is the most important activity because risks can make or break your project. In risk management, you first need to:

• Identify
• Assess
• Actionize
• Review

This will help you create a list of risks, their probability, impact on your project and what are the actions needed to remove or reduce the risk. This is known as one of the following strategy:

• Avoid the risk: Remove the root cause of the risk altogether
• Mitigate the risk: Take some actions that will either reduce the impact or probability of the risk
• Transfer the risk: Take actions where a 3rd party will either help you share the risk impact in financial or other terms; such as insurance
• Accept the risk: This means that you have accepted the FACT this risk is bound to hit your project and you prepare contingency plans for that. You ready for the SITUATION and have the plans ready to deal with it.

Now once your risk response strategy is finalized then you need to PERFORM the expected monetary value analysis where you will multiply the risk score [impact * probability] and the project budget to get the EMV. That is the amount of money you stand to lose if this risk gets realized and share this data with your senior management for actionizing.

Using these data POINTS and strategies, you should continuously monitor your risks and get to the success point. ☺