Risk Management is a work process to eliminate or minimise potential impact such as loss money, extend schedule, or less performance caused by the risks or uncertainties. The Risk Management work process is the risk identification; assessment and analysis (probability, consequence, and impact); treatment classification (risk response), and prioritisation, reporting, monitoring, and controlling.
A method of the Risk Classification (response or hedging) is a Risk Avoidance (not to take: High probability and high impact); Risk Transfer (Financing, Insurance: Low probability and high impact); Risk Mitigation (Sharing, Contingency provision: High probability and low impact), and Risk Acceptance (Taking, Retention, and Unidentified Risk: Low probability and low impact).
Related Definitions in the Project: The Project Management; Risk Management
