What is meant by risk management Explain the components of risk management?

Risk management includes planning risk management, identifying and analyzing the risks, preparing the response plan, monitoring the risk, and implementing the risk response if the risk occurs.

Risk Management Involves the following activities/components

• Plan Risk Management - A process to determine the how of risk management: how to conduct risk management for the project at hand.

• Identify Risks - A process to identify and document the risks that might occur for a given project.

• Perform Qualitative Risk Analysis - A process used to estimate the overall probability for risks to occur and their impact and to prioritize them accordingly for further analysis.

• Perform Quantitative Risk Analysis - A process used to analyze numerically the effect of identified risks on meeting the project objectives.

• Plan Risk Responses - A process used to prepare a risk response plan in order to increase the positive impact and decrease the negative impact of risks on the project.

• Monitor and Control Risks - A process used for tracking identified risks, identifying new risks, executing risk response plans, and evaluating the effectiveness of executing responses throughout the lifecycle of the project.