When initiated at the beginning of a project, most risks may be identified and controlled or measures put in place to counter act them. Risk Management is an integral part of a project and is an ongoing process. It is a sequential process which involves assessing and classifying risks using the PI-Matrix and the Decision Making Tree system. Project Risk Management, with the help of the above mentioned factors and documents, depends primarily on the three major steps of Risk Identification, Risk Assessment and Risk Resolution. In the example above, we can add tasks to our project plan for hiring an additional gardener and looking for a new subcontractor in case the current one doesn’t work out.
Once you have your risk management plan outlined, you can start adding tasks to your project plan for helping mitigate or eliminate risk. See the below table for an example risk management plan. The first column can simply be an ID column. The columns will be named after each of the five items in the previous section. Mitigation Response - a brief overview of mitigation steps to eliminate or reduce the risk. Higher priority items should be mitigated and planned for before lower priority items.
Priority - (Probability * Impact) will give you an idea of the priority of the risk. Impact - what is the impact to the project if the risk should occur? Build a scale appropriate for the project - smaller projects can use a simple impact of 1-5 (minimal to major) whereas larger projects may want a more formal scale. Probability - the table should contain a probability of the risk occurring. What risks can be associated with this project? Will the risks affect the schedule, resourcing or budget? 2. Risk and Consequences - Brainstorm risks before you beginning your project and continue adding to your risk management plan as the project moves throughout it’s life-cycle. The risk management matrix will document the following items: 1. You will never be able to eliminate all risk, but you can prioritize and document risks to attempt to mitigate or eliminate them. The main goal of creating the risk matrix is to prioritize your risks. For each risk outlined in the risk matrix you will want to create a thorough analysis for each. Complex projects require more thorough risk analysis and planning. The risk plan for smaller projects can be as simple as a risk management matrix. The risk management plan should be a part of your overall project plan. With the advancement in project management studies and techniques, risk management has taken a main place in the project life cycle in most cases at the outset of the project itself. Don’t ignore risk! Risk management ideally takes a project throughout the phases of risk identification, risk assessment and risk resolution.
#Risk management plan how to#
This article will walk you through a risk management plan example so you better understand how to use this important tool. A risk management plan should be periodically updated and expanded throughout the life cycle of the project, as the project increases in complexity and risks become more defined. The risk management plan evaluates identified risks and outlines mitigation actions. There are many approaches to project risk management planning, but essentially the risk management plan identifies the risks that can be defined at any stage of the project life cycle.