AbstractThis paper documents an effective, formal risk management process that is based on cost impact. The process is used in current programs. Key to the process is the objective ranking of risks based on more detailed subjective identification of cost impact. Higher‐ranking risks have mitigation action plans, receive emphasis at monthly reviews, and are tracked in a planned manner. Lower‐ranking risks stay on the overall list for later evaluation without expending inordinate time and effort. The paper provides the process, methods to identify risks, methods to assess the risks, and methods to review and track the ri