This chapter discusses risk management, which is an important part of project management. It is essential that the project can manage its exposure to risk, and that it is well prepared for any unanticipated events that may arise during project execution. Otherwise, there is a danger of major impacts on the project or significant additional costs to the project. The project manager needs to be proactive in identifying risks that may occur during the project to ensure that they can be managed effectively, and that the project will not be adversely affected.