Develop a risk response plan, which is a documented plan for risk response. The document should contain

• The identified risks

• The project areas or objectives the risk may affect

• The roles and responsibilities of any risk owners

• A description of the risk response strategies, including escalation, avoidance/exploitation, transference/sharing, mitigation/enhancement, and acceptance that will be used to address the identified risks

• An acknowledgement of any residual risks projected to remain after any risk response strategies have been applied

• A list of actions to be used to implement the risk response strategies All projects involve a certain level of risk. Project risk is any uncertain event that may have a positive or negative effect on a project objective. Project Risk Management, therefore, involves understanding the possible problems that might occur during the project life cycle and how they will affect the success of the project. Significant improvements in project outcomes result from effectively managing project risk. Organizations need to understand that Project Risk Management processes are an investment—
these processes cost money but can also yield benefits