This chapter covers key concepts related to Project Risk Management.

1. The knowledge area of Project Risk Management consists of the following processes -

   Risk Management Processes

   Process	Project Phase	Key Deliverables
   Plan Risk Management	Planning	Risk Management Plan
   Identify Risks	Planning	Risk register
   Perform Qualitative Risk Analysis	Planning	Risk register updates
   Perform Quantitative Risk Analysis	Planning	Risk register updates
   Plan Risk Responses	Planning	Risk related contract decisions
   Monitor and Control Risks	Monitoring and Controlling	Risk register updates

2. A project risk is a potential source of deviation from the project plan. Project risks can have a negative or positive impact on the project. Project risks that are negative are called threats. Project risks that are positive are called opportunities.
3. Responses to threat include --
   • Reducing the probability of risk
   • Developing contingency plans
   • Passively accepting consequences.
   • Transferring risk
   Insurance is an example of transferring risk.
4. Non-critical risks should be documented. They should be revisited and reviewed regularly.
5. Risks are identified in all phases.
6. Work-around refers to how to handle risks that have occurred but are not part of risk response plan. This happens in risk monitoring and control phase.
7. Delphi technique is most commonly used to obtain expert opinions on technical issues. It can be used to get inputs on Scope, Estimates or Risks. Some characteristics of the Delphi technique are -
   • The experts identities are anonymous. They are not in the same room.
   • The PM tries to build a consensus among the experts.