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.