This is Step 1 in the risk management process. In this step we ask ourselves “what are we trying to achieve?“
We should start by defining our scope. If our risk management will be related to a specific project then we can say that our scope is that project. Our scope might be a small business; we’ll be doing risk management for all aspects of the business. Alternatively our scope might be a specific area or division within an organisation.
We need to know what our objectives are. If our scope is a project then we’ll focus on the objectives for that project. The project’s objectives may be documented in the “project charter”, if we have one.
Risk can be defined as “uncertainty that matters”. An uncertainty matters if it affects our ability to meet our objectives.
After Scope and Objectives the next step in the risk management process is Risk Identification.