Risks Management Plan

"Risk Management" is the art and science of thinking about what could go wrong, and what should be done to mitigate those risks in a cost-effective manner.

A Risk Management Plan is a document prepared by a project manager to foresee risks, to estimate the effectiveness, and to create response plans to mitigate them. It also consists of the risk assessment matrix.

“There are known knowns; there are things we know that we know. There are known unknowns; that is to say, there are things that we now know we don’t know. But there are also unknown unknowns; there are things we do not know we don’t know. ” - United States Secretary of Defense Donald Rumsfeld

Risk Definition

A risk is a potential problem, a situation that, if it materializes, may adversely affect the project. Risks that materialize are no longer risks, they are problems. All projects have risks, and all risks are ultimately handled:

• Some disappear
• Some develop into problems that demand attention
• A few escalate into crises that destroy projects

The goal of risk management is to ensure that risks never fall into the third category.

“If you don't attack the risks, the risks will attack you!” - Unknown author