Page 196 - DCAP304_DCAP515_SOFTWARE_PROJECT_MANAGEMENT

Software Project Management

Notes

Task In a group of three write in your words that why risk management is important?

10.5 Risk Management Cycle

Every project is subject to constant change in its business and wider environment. The risk
environment is constantly changing too. The project’s priorities and relative importance of risks
will shift and change. Assumptions about risk have to be regularly revisited and reconsidered,
for example at each end stage assessment.
The Figure 10.5 shows the main steps through the risk management cycle:

 Identify the risks
 Evaluate the risks
 Identify suitable responses to risk

 Select
 Plan and resource

 Monitor and report

Figure 10.5: Steps of Risk Management Cycle

There are four stages to risk management planning. They are:
 Risk Identification
 Risk Quantification

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