Risk Monitoring

The Monitoring process systematically tracks and evaluates the effectiveness of risk-handling actions against established metrics. Monitoring results may also provide a basis for developing additional handling options and identifying new risks.  The key to the monitoring process is to establish a cost, schedule, and performance management indicator system over the entire program that the PM uses to evaluate the status of the program.  The indicator system should be designed to provide early warning of potential problems to allow management actions.  Risk monitoring is not a problem-solving technique, but rather, a proactive technique to observe the results of risk handling and identify new risks. 

 

As noted in the Risk Planning section, the initial establishment of a management indicator system that provides accurate, timely and relevant risk information in a clear, easily understood manner is the key to risk monitoring.  Note that risks can change over time.  Every action taken, or not taken, changes the basic facts each risk is derived from.  Continually monitoring risks and reassessing their potential impact (repeating the risk identification, assessment and handling steps at periodic intervals) is essential for appropriately managing risks.