Risk management planning is important process how you do risk identification, risk analysis, risk responses, risk monitoring and control. Risk is not always bad, when we think about risk we always think about the negative impact of risk .But we have to think about the risk and the rewards. An example, you identified a risk and you know that if it happens it will cause you 25000 $ and there is a 60% chance that risk is going to happen. And now you also know that you can spend 10000 $ and that risk will go away. Are you willing to spend 10000$ and make that risk completely go away or do you take that 60 % of chance and let go that 25000$?
In risk management planning we consider the stakeholder tolerance for risk, the basic concept is higher is the project priority is more willing is the organization to spend money to eliminate risk. In Planning meeting and analysis, we need project manger, project team, stakeholders. we need to consider cost elements, schedule activities and risk management plan.