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A Risk is an uncertain event or condition that if it occurs, has a positive or negative effect on a Project's Objectives.

Composite Risk Management or The Standard 5 step approach to project risk management consists of the following steps1. Risk Management Planning - This is the first step. This is where we plan and strategize on how to manage all the risks in our project. This is where the Risk Management Plan is created. We define what a risk is and ensure that everyone is in the same page.

2. Information Gathering & Risk Identification - This is where we gather all the relevant information that will enable us to identify all possible risks that might affect our project or its outcomes.

3. Risk Assessment & Analysis - This is the step where we analyze all those risks identified in the previous step. We will shortlist only those important (high impact/probability) risks and move the lower priority/possibility risks to a watch list.

4. Risk Response Planning - This is the step where all those risks that were identified & analyzed are actually addressed. We work on minimizing the probability of the negative risks as well as on enhancing the opportunities. We create workaround plans, risk mitigation strategies, contingency plans etc. in this step.

5. Plan Execution - This is the step where we implement the Risk Response Plan, monitor all the identified risks, look out for new risks, check the watch-list to ensure that their priority/probability/impact haven't changed etc.

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