Step 1: Risk Identification
In Step 1, search for and identify the risks. Determine risks that could be a potential loss or lead to negative consequences for the project. Also, look for risks that represent opportunities that might be exploited.
Step 2: Risk Analysis
In this step, define the probability and impact of each risk to determine the exposure. You can then prioritize the risks to determine how the project team is going to address each one.
Step 3: Risk Response Planning
In this step, you decide what, if anything, should be done with the risk. To help you decide, consider the responses to the following questions: Who owns the risk? What should be the response to the risk? What actions and plans should be put in place to address the risk?
Step 4: Risk Tracking and Control
In Step 4, you continually collect and analyze data about the identified risks to determine whether action must be taken.
Step 5: Risk Reaction
In this final step, implement the identified action plan in response to actual risk occurrence. You also close the risk, if appropriate.