What is the risk management process in project management?

The risk management process follows six steps. Plan Risk Management establishes how risk activities will be conducted. Identify Risks determines which risks may affect the project through brainstorming, checklists, interviews, and SWOT analysis. Perform Qualitative Risk Analysis prioritizes risks by probability and impact using a probability-impact matrix. Perform Quantitative Risk Analysis numerically estimates the effect of risks on project objectives using techniques like Monte Carlo simulation. Plan Risk Responses develops strategies to reduce threats and exploit opportunities.