The goals, objectives, strategies, scope and parameters of the project alliance should be established. The process considers the need to balance costs, benefits and opportunities. Setting the scope and boundaries for applying risk management to the project alliance involves:
• defining the alliance, process, project or activity and establishing its goals and objectives;
• specifying the nature of the decisions that have to be made;
• defining the extent of the project activity or function (the time and location);
• identifying any scoping or framing studies needed and their objectives and the resources required;
• defining the depth and breadth of the risk management activities to be carried out, including specific inclusions and exclusions;
• considering the roles and responsibilities of various parts of the alliance participating in the risk management process;
• considering the relationships between the project or activity and other projects or parts of the organisation.