ABSTRACT
This chapter presents the processes at the project level regarded as essential to achieving the desired alignment. It begins by describing the nature of projects and the role of risk and reward in the project life cycle. Processes that are critical to effective project risk management are then identified: the project risk management plan, project risk analysis and ranking, the project risk register, implementation of risk responses, and the functioning of the project team. Risk monitoring and control is required throughout the project's life cycle. This determines the acceptability of the level of project risk in comparison with project expenditure and value. The initial financial exposure is relatively small as the project is still in the planning stage. Project risk management plays a key role in achieving the project's objectives by identifying, analysing and responding to risks that impact on them throughout the life of a project.
