> 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/risk_management_process.md).

# Risk management process

## Basic idea

Five steps, run continuously: Plan → Identify → Analyse/Assess → Respond → Monitor/Control. The first time through builds the RMP; subsequent passes keep it current.

## Key formulas

* Prioritisation: $RE = P \cdot I$
* Response strategies: avoid, transfer, mitigate, accept.

Plan

* How to approach and plan risk management activities

  Identify
* Identify the possible risks

  Analyse and assess
* Identify the relative priorities of the identified risks

  Respond (Action)
* How can we reduce the likelihood or impact of risks?

  Monitor and control
* How can we detect the ongoing status of our risks? How can we control them effectively and efficiently?