A lot of risk management tools were developed over time to further analyze and assess risk behaviors. The primary functions of these tools are to assist in the evaluation of risks, to make sure that risk assessments encompass all relevant aspects of the plan and to provide specific means of rising above the fundamental bases for the determined risks. The tools used to assess risks are WBS, SOW and Proposal. On the other hand, Make-or-buy decisions, development tests and engineering analyses are the frequently used means of mitigating risks.
The structure of every process that will be done in a program or project is referred to as the WBS. Hence, every element of WBS should be assessed and reviewed, therefore providing a system framework of identifying potential risk. SOW refers to statement of work. This tool is similar to WBS but its emphasis is more on the critical elements (items of concern) of the program. Similarly, Proposal identifies the items that involve new aspects of risk management to be reviewed and judged.
Make-or-buy decisions involve the process of weighing risk in deciding the usage of internal or external resources. Internal resource refers to the things that you already have in the organization (i.e. vendor) while external ones are things that you can purchase or hire (i.e. subcontractor). Development testing is the phase wherein every output is checked to make room for quality verification, and modifications of existing design to further improve the product. Lastly, once everything about the project was tested, engineering analyses are then produced to document every testing performed for all mechanical and human elements of the project. All of these tools make a good risk management plan.