Project Risk Management Plan

[admin]

1. Define the risk management methodology to be used. Section 1 of this table defines your risk management process. The risk management process is scalable to ensure that the level, type, and visibility of risk management are commensurate with both the risk and the importance of the project. Modify the text in this section to fit your process.


Risk Identification – Identify risks through discussion with all major stakeholders. Also use the Risk Assessment Questionnaire and Project Planning Risk Assessment Checklist, augmented to include other project specific risks, as appropriate.


Risk Categorization – Group the risks into categories by using the Risk Assessment Questionnaire. The project manager can create additional categories, as required.


Risk Probability and Impact Assessment – Enter all risks into the Risk Response Plan document. For each risk identified, assess the risk event in terms of likelihood of occurrence (Risk Probability) and its effect on project objectives if the risk event occurs (Risk Severity = Impact Score). This information will be used to prioritize the risk using established threshold criteria.


Risk Prioritization - Risks that meet the threshold criteria will be so noted in the Risk Register. These Risks will be prioritized.


Risk Response Planning – For each risk in the Risk Register that is above the Risk Threshold:

• Determine the options and actions to reduce the likelihood or consequences of impact to the project’s objectives
  
• Determine the response based on a cost/benefit analysis (cost vs. expected effectiveness)
  
• Describe the actions to be taken to mitigate the risk
  
• Describe the Signs and Symptoms that may be indicators of Risk Event occurrence
  
• Describe the actions to be taken when the risk event occurs (contingency plan)
  
• Assign responsibilities for each agreed-upon response
  
• Assign a “due date” where risk responses are time-sensitive
  
• Determine impact on project budget and schedule and make appropriate changes or additions to the project plan.
  
• Incorporate this information into the Risk Register
  

Risk Response Tracking
Risk Monitoring
Risk Control

[mjohn]

Risk management plan is a plan that identifies the future risks and prepares the contingency plan to deal with them. Many professionals think that this plan is a separate and isolated plan; however, this is a wrong assumption. Risk management plan is the integral part of the project management plan and it is developed along with it. This plan defines the guidelines that how you will identify the project risks and techniques to manage them.