Risk management is the process of identifying, assessing, and mitigating threats that can affect your desired outcome. Once a risk is identified, it needs to be analyzed to determine its likelihood of occurring and the impact it would have if it were to occur. Finally, a strategy will need to be put in place to avoid the risks or reduce their impact.
Project Risk Management is necessary to avoid changes to the schedule, the budget, the scope, or the quality of a project due to unexpected issues. As part of the project risk management process, a response plan is created. This allows for faster and well-thought-out responses when issues arise.
Quality Risk Management is all about the "what if's" that could negatively affect the quality of the product or service. The process involves identifying, assessing, controlling, communicating, and reviewing risks. Depending on the severity of the risk, an appropriate level of effort, formality, and documentation is needed. By using Quality Risk Management, you can develop robust processes, facilitate decision-making, and use resources more efficiently.
