Risk management plan
Programme/Project Risk Management is the process of evaluating alternative responses to project risks and selecting among them. It is the process of evaluating alternative responses to project risk and selecting among them.
A Risk management plan is a document prepared by a project manager to foresee risks, to estimate the effectiveness, and to create response plans to mitigate them. It also consists of the risk assessment matrix.
Project Risk Management
A risk is defined as "an uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives. "Risk is inherent with any project, and project managers should assess risks continually and develop plans to address them. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks.
Risk management planning in projects/programmes include at least the following processes:
Risk Analysis A systematic use of available information to determine how often specified events may occur and the magnitude of their consequences. it involves listing expected risk areas; compare project objectives to risk items and identify manageable risks.
Risk Avoidance and Mitigation plan Designing activities in such a way as to minimize risk exposure.
Risk Management Plan Identify specific work processes to respond to the eventuality that risk occur.
Most critically, risk management plans include a
risk strategy. Broadly, there are four potential strategies, with numerous
variations. Projects may choose to:
Transfer risk; outsource risk to a capable third
party that can manage the outcome
During
Project Execution and
Control risk management takes the form of
monitoring and controlling risks.
Templates:
Risk consequence Matrix
Risk Likelihood Matrix
Risk Management Worksheet – a record of risk variables, impact, probability, date of impact, level of priority and risk response actions which is continuously monitored and updated, and its Risk Management Plans applied as part of Project Execution and Control.