^ [[9 Monitor & Control]] # 9.7  Manage Risk Risk management is a systematic ongoing process for identifying, assessing and managing risks so that they conform to the organisation’s accepted risk attitude. Risk management improves the project team’s confidence by proactively managing any potential event that might have a positive or negative impact on project objectives. The Risk Management Process can be tailored and customised to a project’s needs and can be documented either in a Risk Management Plan or in the Project Handbook. A Risk Log is used to document and communicate the risks and relevant risk-response actions and responsibilities (see Appendix B). ![[Table 9.7 - Manage Risk - Key Participants.png]] ## Inputs - [[Business Case]] and Project Charter - Risk Management Process - Risk Log ## Steps 1. **Identify risks**: The purpose of this step is to identify and document the risks that can have impact on the project’s objectives. Note that new risks may arise at any point during the project and should be added to the Risk Log for further analysis/action. 2. **Carry out a risk assessment**: The purpose of this step is to assess the likelihood of each risk and the severity of its impact on project objectives. This assessment is necessary before any risk response can be planned. Medium to high level risks are dealt with at a higher priority level. 3. **Develop a risk-response strategy**: The purpose of this step is to choose the best possible strategy to meet an identified risk and to plan actions necessary to implement this strategy. 4. **Control risk-response activities**: The purpose of this step is to monitor and control the implementation of risk-response activities and to revise/update the Risk Log based on a regular reassessment. 5. **Record**: Update the Project Work Plan with clear risk-response tasks whenever deemed necessary. 6. **Report**: Regularly inform the Project Steering Committee (PSC) about risk-related activities. ![[Fig 9.8 Manage Risk inputs - outputs and main roles.png]] ![[Table 9.7 - Manage Risk - Related Artefacts.png]] ## Outputs - Risk Log (updated) (PM2 Template) ___ Spanish Guide: [[9.7 Gestión de Riesgos]] <-- [[9.6 Manage Project Change]] --> [[9.8 Manage Issues and Decisions]]