Hope this help
Explanation:
Before you’re able to analyze the risk in your project, you have to acknowledge that risk is going to happen in your project. By planning for risks, you begin the process of knowing how to identify, monitor and close out risks when they show up in your project.
Part of that process is risk analysis. It’s a technique that helps you to mitigate risk. There are also tools that can assist. You should at the very least, have a risk tracking tool or use a risk tracking template to identify and list those risks.
Definition of Risk
Hopefully, you’re familiar with the basics of project risk management. (if not, more in a bit.) Risks are anything that can potentially disrupt your project or your team. Since every project is unique, no two projects are likely to have the same risks.
It’s up to managers and their teams to identify risks, prioritize their impact, and create mitigation plans where appropriate in case those risks become real issues. But it’s important that you also have to understand what is meant by the word analyze in reference to project risk management.
Risk Analysis vs. Risk Identification vs. Risk Management
People frequently confuse risk analysis with risk identification and risk management. Let’s clear that up before we continue.
What Is Risk Analysis?
Risk analysis is the process that figures out how likely that a risk will arise in a project. It studies uncertainty and how it would impact the project in terms of schedule, quality and costs if in fact it was to show up. Two ways to analyze risk is quantitative and qualitative. But it’s important to know that risk analysis is not an exact science, it’s more like an art.
What Is Risk Identification?
Risk identification is also a process, but in this case it lists all the potential project risk and what their characteristics would be. If this sounds like a risk register, that’s because your findings are collected there. This information will then be used for your risk analysis. Though this process starts at the beginning of the project, it’s an iterative process and continues throughout the project life cycle.
