What needs to be done?
Identify the risks in the project and categorize them into pre-defined, fixed categories
Estimate the probability of the risk to materialize and the potential impact on the project, then calculate the 'risk exposure' measurement
Define response strategies for each risk and break it down into operational actions
Develop a proper risk management plan
Estimate the cost of preventing or reducing the risks in the project and the cost of dealing with the problem - if the risk materializes