> For the complete documentation index, see [llms.txt](https://isubasinghe.gitbook.io/isithas-wiki/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://isubasinghe.gitbook.io/isithas-wiki/software_engineering/management/risk_management.md).

# risk\_management

## Basic idea

Identifying, analysing, planning for, and monitoring uncertain events that could impact a project. Drives the risk management plan (RMP) and ongoing tracking.

## Key formulas

* Risk exposure: $RE = P \cdot I$
* Expected monetary value: $EMV = \sum\_i P\_i \cdot V\_i$