One part that contributes to the Risk Management Plan is the process of performing a Risk Analysis. During this step, the goal is to define and analyze the dangers to individuals and/or businesses posed by potential adverse events. In a broad definition, Risk Analysis can include risk assessment, risk communication, risk characterization, and any policies relating to risk. The easiest approach is to use information that is already available in order to determine how often an identified potential event may occur and what the consequence would be if it happened.
Risks are typically defined as negative events. However, the process of risk analysis has the ability to uncover potential positive outcomes. By exploring the all of the possible outcomes for a given situation, a good risk analysis can identify both potential pitfalls as well as uncovering new areas of opportunity.