How is risk management defined in project management?

Risk management in project management is defined as the process of identifying, assessing, and controlling risks that may affect the project's success. This encompasses a systematic approach to recognizing potential threats or opportunities that could impact project objectives. After identification, risks are analyzed for their probability and potential impact, allowing project managers to prioritize them appropriately. The controlling aspect involves developing strategies to mitigate, transfer, or accept these risks as part of the overall project planning and execution process.

By focusing on both risks and opportunities, risk management enables project teams to make informed decisions, effectively allocate resources, and enhance the likelihood of project success. This ensures that risks are not just acknowledged but actively managed throughout the project lifecycle, which is crucial for minimizing negative impacts and maximizing outcomes.