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This chapter is from the book

Component Activities of Risk Management

Abstracting backward from this single example, we see five main activities that make up the practice of risk management:

  • risk discovery: your initial risk brainstorm and subsequent triage, plus whatever mechanism you put in place to keep the process going
  • exposure analysis: quantification of each risk in terms of its probability of materializing and its potential impact
  • contingency planning: what you expect to do if and when the risk materializes
  • mitigation: steps that must be taken before transition in order to make the planned contingency actions possible and effective when required
  • ongoing transition monitoring: tracking of managed risks, looking for materialization

The first of these is an overall activity, while all the others are done on a per-risk basis.

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