Solution

Risk Management Activities (Boehm / SEI)

1. Risk Identification - List potential risks: product, project, business (e.g., staff turnover, requirement change, tech failure, schedule slippage). Techniques: checklist, brainstorming, Delphi.
2. Risk Analysis - Assess probability ($P$) and impact ($I$), exposure $RE = P \\times I$. Qualitative vs quantitative.
3. Risk Prioritization / Ranking - Order by exposure; Pareto 80/20. High-exposure handled first.
4. Risk Planning / Mitigation - Avoid, transfer, reduce, accept. Contingency plans, prototypes, incremental delivery.
5. Risk Monitoring & Control - Track triggers, reassess, execute mitigation, status reports.
6. Risk Resolution / Mitigation Execution - Implement actions.

Some books group as: Assessment (Identification+Analysis+Prioritization) → Control (Planning+Resolution+Monitoring).

Is Prioritization Possible? YES

Yes, risks MUST be prioritized because resources limited.

Method:

• Compute Risk Exposure = Probability × Impact (or Risk Leverage)
• Build Risk Table sorted descending. E.g.:

Risk	P	Impact (1-5)	RE	Priority
Staff leaving	0.7	4	2.8	1
Requirement change	0.6	3	1.8	2
Tech not mature	0.3	5	1.5	3

• High RE = high priority. Use risk matrix / cutoff.

Example: In E-commerce project, payment gateway integration failure (P=0.5, Impact=5, RE=2.5) is prioritized over minor UI delay (P=0.8, Impact=1, RE=0.8). Top risks get mitigation budget and weekly monitoring; low risks accepted.

Conclusion: Prioritization is not only possible but essential for effective risk management.