Risk Assessment:-

The goal of risk assessment is to prioritize the risks so that attention and resources can be focused on the more risky items. Risk identification is the first step in risk assessment, which identifies all the different risks for a particular project.

These risks are project-dependent and identifying them is an exercise in envisioning what can go wrong. Methods that can aid risk identification include checklists of possible risks, surveys, meetings and brainstorming, and reviews of plans, processes, and work products.

Checklists of frequently occurring risks are probably the most common tool for risk identification—most organizations prepare a list of commonly occurring risks for projects, prepared from a survey of previous projects. Such a list can form the starting point for identifying risks for the current project.

Risk is the possibility of suffering loss. In a development project, the loss describes the impact to the project which could be in the form of diminished quality of the end product, increased costs, delayed completion, or failure. Risk Management is a software engineering practice with processes, methods, and tools for managing risks in a project. It provides a disciplined environment for proactive decision-making to:

assess continuously what can go wrong (risks identification and assessment).

determine what risks are important to deal with (risk priorotization).

implement strategies to deal with those risk (risk resolution).

Now describes 6 essential activities for risk management, classified as risk assessment and control:

Risk Assessment:-

Risk Identification - produces lists of the project-specific risk items likely to compromise a project's success.

Risk Analysis - assesses the loss probability and loss magnitude for each identified item, and it assesses compound risks in risk-item interactions.

Risk Priorotization - produces a ranked ordering of the risk items identified and analyzed.

Risk Control:-

Risk Management Planning - helps prepare to address each risk item, including the coordination of the individual risk-item plans with each other and with the overall project plan.

Risk Resolution - produces a situation in which risk items are eliminated or otherwise resolved.

Risk Monitoring- involves tracking the project's progress toward resolving its risk items and taking corrective action where appropriate.