Part 153: Risk Management Plan

//Part 153: Risk Management Plan
Part 153: Risk Management Plan2022-08-21T03:59:24+00:00

Part 153: Risk Management Plan
(OUTPUT Project Risk Management: Plan Risk Management)

  • The Risk Management Plan describes how risk management activities will be performed
  • Does not contain the actual risks
  • Includes
    • Strategy
      • How will we manage risk?
    • Methodology
      • Defines tools and data sources that will be used to perform risk management
    • Roles and Responsibilities
      • Defines the members of the risk management team and their responsibilities
    • Budgeting
      • Estimates funds needed for risk management
      • Allows funds for risk management activities to be included in the project budget
    • Timing
      • Defines when and how often the risk management processes will be performed
      • Allows risk management activities to be included in the project schedule
    • Risk Categories
      • Defines a method for grouping different causes of risk
      • Can use a Risk Breakdown Structure (RBS) to categorize the sources of risk in a hierarchy
      • Allows us to consider the sources of risk
      • Our organization may have a specific Risk Breakdown Structure that we are required to use
    • Definitions of Risk Probability and Impact
      • Probability and Impact must be defined so that risks can be ranked
      • Probability is the likelihood of a risk occurring
      • Impact is the effect of a risk on a project’s objectives
      • We use levels for Probability and Impact
        • Such as Very High Probability, High Probability, Medium Probability, Low Probability
        • Such as Significant Impact, Some Impact, Minor Impact, No Impact
        • We can have many levels or few levels depending on the amount of detail required
        • Remember that Impact can be both positive and negative
      • The combination of Probability and Impact result in a ranking of each risk
    • Probability and Impact Matrix
      • A grid for mapping the Probability and Impact of each risk
    • Stakeholder Risk Appetite
      • The risk appetite of each stakeholder for each project objective
      • How much project risk is each stakeholder willing to take?
    • Reporting Formats
      • Defines how the Risk Management Process results will be documented and communicated
    • Tracking
      • Documents how risk activities will be recorded and how risk management processes will be audited