What should be established once risks have been identified?

Once risks have been identified, it is crucial to establish contingency plans. Contingency plans are proactive strategies that outline how to respond to potential risks should they occur. By creating these plans, an organization can mitigate the impact of risks on operations and objectives, ensuring that there are predefined steps to follow, resources allocated, and responsibilities assigned in the event of unforeseen issues.

Contingency planning allows for a more structured response to risks, enabling a business to become more resilient and agile. It is an essential component of risk management, fostering preparedness and reducing uncertainty among team members and stakeholders.

Other options, such as final reports, budget adjustments, and stakeholder approval, serve important roles in the broader project management process, but they do not directly address the immediate needs for managing risks post-identification. Final reports are typically generated at the conclusion of a project, budget adjustments might be necessary after assessing risks but are not the first step in response, and stakeholder approval is generally sought for major decisions but does not provide a framework for managing identified risks.