The first step in any risk management strategy is to identify the potential threats and risks to a project. It is only by developing an awareness of what could happen that you stand any chance of doing something about it. There are two main areas to look at when identifying risks and these are the internal and external factors that may have an effect on the project. Internal factors include the project management team, company culture, management of change and budget, allocation of resources etc. External factors include anything outside the organisation that could impact on the project, such as the economy, clients, sub-contractors and service providers.