Risk Management is the activities used to identify, analyze, respond to, and monitor risks at the enterprise, portfolio, program, or project level.
It is a continuous and systematic process that ensures potential threats and opportunities are effectively addressed to support the achievement of objectives.
Key Characteristics
- Structured and Iterative – Conducted regularly throughout the lifecycle
- Scalable – Applies across all organizational levels, from project to enterprise
- Integrated with Planning – Embedded within scope, cost, schedule, and quality processes
- Supports Decision-Making – Informs strategy, allocation, and contingency planning
Example Scenarios
- Managing supplier risk across a multi-project program
- Identifying regulatory threats in a strategic portfolio review
- Tracking evolving technology risks during system development
Role in Organizational Success
- Reduces Uncertainty – Enhances control over performance and outcomes
- Enables Proactive Action – Promotes early risk detection and mitigation
- Improves Stakeholder Confidence – Demonstrates structured oversight and responsiveness
- Aligns With Governance – Supports compliance, standards, and strategic priorities
See also: Risk Identification, Risk Analysis, Risk Response Plan, Monitor Risks, Risk Register.