Risk States and Transitions

Risk work items document a probable event or condition that can have a potentially negative outcome on the project in the future. An essential aspect of project management is to identify and manage the inherent risks of a project. If a risk is assigned for mitigation, it becomes Active. The risk remains active until the mitigation actions are complete, at which point the risk is resolved. If a resolved risk is verified to be completely mitigated, it is then closed. If at any point the event identified by the risk occurs, the risk becomes an issue and a contingency plan is enacted.

New

Risk work items are created as the result of the Identify Risks activity.

New to Active

New	A risk is proposed as a new risk when it is first created.

Proposed

A proposed risk is one that is identified and analyzed for likelihood of occurrence, cost of occurrence, mitigation options, mitigation triggers, and a contingency plan. A proposed risk is activated if the mitigation triggers are set off, or the risk is a high enough priority to mitigate immediately. A proposed risk is closed if it is determined to no longer be a risk, or if it is not feasible to mitigate the risk.

Proposed to Active

Mitigation Triggered

A risk is activated as Mitigation Triggered when the conditions defined by the mitigation triggers are realized, or when a risk is considered a high enough priority to warrant immediate mitigation.

Proposed to Closed

Rejected (Not a Risk)	A risk is closed as Rejected (Not a Risk) when further analysis or review indicates that the event or condition to cause the risk cannot occur, or the impact is negligible.
Accepted	Some risks are such that it is simply not feasible to intervene with effective preventative or corrective measures. The team elects simply to accept the risk in order to realize the opportunity. In these cases, the risk may be closed as accepted.

Active

An active risk is in the process of being mitigated. When the tasks to mitigate the risk are complete, the risk moves to the Resolved state. If the risk occurs before mitigation is complete, an issue work item is created to track the problem, and the risk work item is closed.

Active to Closed

Overtaken by Events	A risk is closed as Overtaken by Events when the risk is realized before it is mitigated. An issue work item is created to track the problem and linked to the closed risk work item. The contingency plan is enacted as a corrective action for the issue.
Eliminated	A risk is closed as Eliminated if the risk is no longer valid because of a change to the project or the risk itself. The risk may have failed to materialize and thus the project can stop tracking it.
Rejected (Not a Risk)	A risk is closed as Rejected (Not a Risk) when further analysis or review indicates that the event or condition to cause the risk cannot occur, or the impact is negligible.

Resolved

A resolved risk has its mitigation tasks completed. The work of the tasks must be verified before closing the risk. If the mitigation is unsatisfactory, the risk is reactivated.

Resolved to Active

Mitigation Unsatisfactory

A risk is reactivated as Mitigation Unsatisfactory if review of the mitigation actions determines that they will not address the risk sufficiently.

Resolved to Closed

Mitigated

A risk is closed as Mitigated if review of the mitigation tasks determines that the actions were sufficient to mitigate the risk.

Closed

A risk that is closed is either mitigated, or has been accepted because the risk cannot be mitigated.

Closed to Active

Closed in Error

A risk is reactivated as Closed in Error if it was inadvertently closed.