Every phase of the risk management lifecycle plays an essential role. The first phase which is risk identification is where risk is being uncovered, recognized and described based on how it might affect the project along with its outcomes (Kern, Moser, Hartmann, & Moder, 2012). The second phase is risk analysis, it involves the determination of consequences in the likelihood of every risk. An understanding of the threat’s nature is developed in this step along with its potential effect on the objectives and goals of the project.
Risk response planning stands out as the third phase, and it involves evaluation of risk by determination of its magnitude which is its consequences and likelihood. As for the fourth phase, risk response execution and monitoring include assessing the highest-ranking risk along with coming up with a plan to modify that risk to achieve risk levels that are achievable (Kern, Moser, Hartmann, & Moder, 2012). The last phase is execution verification, and it involves monitoring, tracking as well as reviewing risk using Project Risk Register.
Every phase that frame the Risk Management Life Cycle is essential, but the most significant phase is risk identification which is also the first step of this cycle (Kern, Moser, Hartmann, & Moder, 2012). This phase is most significant because it plays a vital role that other stages depend on. Besides, if risk identification phase is not correctly conducted, then the other phases are misled or might not be critical towards solving the risks (Kern, Moser, Hartmann, & Moder, 2012). Moreover, this phases is the primary focus since it requires being keen on identifying all possible risks that threaten a project.
It is this phase that the characteristics of every identified risk is documented to help in further analysis in other phases (Kern, Moser, Hartmann, & Moder, 2012). Furthermore, this face require some level of keenness and accuracy in entering all available information about a given risk including its priority and severity so that one can build a strict risk classification that will positively impact the project.
- Kern, D., Moser, R., Hartmann, E., & Moder, M. (2012). Supply risk management: model development and empirical analysis. International Journal of Physical Distribution & Logistics Management, 42(1), 60-82.
