ABSTRACT
This chapter highlights the basic theory of risk management in the project environment and provides sample tools and techniques for the project manager to use in the endeavor. The ultimate management vision of risk management is in developing an understanding regarding the realm of potential risks that can occur in the project, as well as how each risk can affect project success. Individual organizations and industries have differing perceptions and tolerances regarding risks. Risk identification involves the identification of potential risks affiliated with a project. These risks can be known risks for a potential project such as looking at company historical records to see which risk factors have occurred before on a related project. The primary documentation source for capturing risk events is the risk register. This document is a formal repository source for capturing project knowledge regarding risks and their status.
