Risk identification is the process of determining risks that could potentially prevent the program, enterprise, or investment from achieving its objectives. It includes documenting and communicating the concern.

Risk identification is the critical first step of the risk management process.

The objective of risk identification is the early and continuous identification of events that, if they occur, will have negative impacts on the project's ability to achieve performance or capability outcome goals. They may come from within the project or from external sources.

There are multiple types of risk assessments, including program risk assessments, risk assessments to support an investment decision, analysis of alternatives, and assessments of operational or cost uncertainty. Risk identification needs to match the type of assessment required to support risk-informed decision making.

The risk identification function should not be left to chance but should be explicitly covered in a number of project documents:

Statement of work (SOW),

Work breakdown structure (WBS),

Budget,

Schedule,

Acquisition plan

Execution plan.

METHODS OF RISK IDENTIFICATION:-

The risk identification process on a project is typically one of brainstorming, and the usual rules of brainstorming apply: The full project team should be actively involved.

Potential risks should be identified by all members of the project team.

No criticism of any suggestion is permitted.

Any potential risk identified by anyone should be recorded, regardless of whether other members of the group consider it to be significant.

All potential risks identified by brainstorming should be documented and followed up by the IPT.

Some of the documentation and materials that should be used in risk identification as they become available include these:

• Sponsor mission, objectives, and strategy; and project goals to achieve this strategy,

• Project justification and cost-effectiveness (project benefits, present worth, rate of return, etc.),

• WBS (Work Breakdown Structure),

• Project performance specifications and technical specifications,

• Project schedule and milestones,

• Project financing plan,

• Project procurement plan,

• Project execution plan,

• Project benefits projection

• Project cost estimate