Project risk management involves;
- Risk identification, resulting the risk register
- Qualitative risk analysis based on the probabilities and impacts of risks
- Quantitative risk analysis (Monte Carlo Analysis and other risk simulation techniques)
- Risk response planning
- Risk contingency planning
Basing risk management on data of required quality is important for acceptable outcomes. The commonly used risk data quality assessments are;
- Reviews of project documents
- Bench marking with past similar projects risk management efforts or industry data