Risk management is an integral part of project management and many projects fail due to inadequate risk management. The amount of risk management performed will vary due depending on the importance of the project, and the risk exposure associated with it. PRINCE2 accomodates both 'good' risks and 'bad' risks.
This theme addresses how project management manages the uncertainty in plans and in the wider project environment.
Risks can be responded to in 4 ways. These are called risk responses. These are acceptance, transfer, avoidance and mitigation. Each has their own list of advantages and disadvantages. It is important to chose the best strategy to meet the project's needs.
