1. Risk Identification
Based on the project plan and an understanding of the product, the team identifies sources of risk, possible risk events, and risk symptoms for early detection and corrective or preventive action.

3. Risk Response Development
Based on the decision of which risks to address and which to accept, the project team applies available management practices (such as alternative strategies or procurement practices) to develop response plans. The response plans are captured in a Risk Management Plan.

2. Risk Quantification
Based on an understanding of the stakeholders’ tolerance for risk and the identified sources of risk and potential risk events (including analysis of cost and schedule risks), the team applies various statistical and decision making techniques to determine which risks to address and which to accept.

4. Risk Response Control
Based on the actual risk events as they materialized, and with reference to the Risk Management Plan and ongoing risk identification, the project team takes appropriate actions to either work around or correct a risk.