STEPS TOWARDS AN EFFECTIVE RISK MANAGEMENT. As a team member or a project manager you tend to manage risk on daily basis because it is one of the most important things to do. In the risk management process there are five core principles that will help you run your risk management thus having a positive outcome. Risk is always uncertain and when it occurs it can either cause positive or negative results. It is important to note that risk can make both negative and positive effects on a project. This is because each team member can fall into a trap of thinking that risk will only affect their businesses negatively. As a team member you should be open to the risks that create positive opportunities you can be able to streamline your project and they will be smarter and more profitable. In the risk management process there are five steps that can be followed. The five steps are always the same the names used to describe them is the only different thing. These risk management steps when combined they deliver a simple and effective risk management process. The five steps as are as follows. The first step towards an effective risk management is identification. It is important for you as the team leader to uncover, recognize and describe all the risks that might affect the outcomes of your project. As the team leader you should know the steps that will help you identify the risk. At this point you should come up or start preparing a project risk manager. Analysis is the second steps towards a successful risk management process. Once you have identified the risk, then you should analyze the likelihood and the consequences of all the risks. As a project manager you should be able to understand different natures of risks and the effects it can have on your project. This should also be included in the project risk register. Ranking and evaluating is the third step towards a successful risk management process. These comes after you have identified and evaluated the risk and this will help you determine the risk magnitude and the likelihood of the consequences. Once you have ranked the risk you should make a decision on whether the risk is acceptable or it calls for an issue of warranty. Also this should be included in your project risk register. Treat is another step towards a successful risk management process. Treat is also referred to as risk response planning. At this step you should assess your highest ranked risk and come up with a plan to manage the risk the treats that you will use should also be included in the project risk register. The final step is monitoring and reviewing.