Despite the most careful efforts, sometimes risk cannot be avoided. There will be a number of times over the course of the project’s respective life cycle that the project management team and or the project management team leader will find themselves in a position in which they realize that a particular component as to the project and or a particular facet of that project does in fact come with a set or series of inherent risk. After all of these likely and potential risks have been properly organized and categorized, it is up to the project management team and or the project manager to effectively determine the best way to deal with these risks. The most effective means of doing this is through the establishment of an effective risk management plan. A risk management plan is an input output document that outlines exactly how risk management will be performed on a given project. It can be an informal document, or it can be very specific and very formalized in nature, depending on what exactly is required. Information in these plans can vary widely depending on the project application area and or project size. The actual act of establishing this very project management plan can be referred to as project management planning.
This term is defined in the 3rd edition of the PMBOK but not in the 4th.