This report presents analysis conducted by the U.S. Department of Housing and Urban Development's (HUD's) Office of Policy Development and Research (PD&R) to determine the effectiveness of the risk analysis process used by HUD's Office of Community Planning and Development (CPD). Risk analysis is conducted on recipients of grants from CPD in order to identify those programs most susceptible to waste, fraud, abuse, or mismanagement. CPD staff then monitor the programs identified as high risk as well as a sample of other lower risk programs. This report focuses on risk analysis and monitoring of CPD's four formula grants: the Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), Emergency Shelter Grants (ESG), and Housing Opportunities for Persons with AIDS (HOPWA).