Establish and maintain the strategy to be used for risk management.

A comprehensive risk management strategy addresses items such as the following:

·   The scope of the risk management effort

·   Methods and tools to be used for risk identification, risk analysis, risk mitigation, risk monitoring, and communication

·   Project-specific sources of risks

·   How these risks are to be organized, categorized, compared, and consolidated

·   Parameters, including likelihood, consequence, and thresholds, for taking action on identified risks

·   Risk mitigation techniques to be used, such as prototyping, piloting, simulation, alternative designs, or evolutionary development

·   Definition of risk measures to monitor the status of the risks

·   Time intervals for risk monitoring or reassessment

The risk management strategy should be guided by a common vision of success that describes the desired future project outcomes in terms of the product that is delivered, its cost, and its fitness for the task. The risk management strategy is often documented in an organizational or a project risk management plan. The risk management strategy is reviewed with relevant stakeholders to promote commitment and understanding.

Typical Work Products

1.    Project risk management strategy