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Risk Management Plan


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You need to define how risks associated with the project will be identified, analyzed, and managed. Get this template @

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Risk Management Plan

  1. 1. Risk Management PlanPurposeUse this template to help you define how the risks associated with the project will beidentified, analyzed, and managed throughout the project’s lifecycle.The Risk Management Plan is created by the project manager in the “Plan” stage of theProject Management Methodology and is monitored and updated throughout the project.The intended audience of this document is the project team, project sponsor, managementand other key stakeholders.General InformationThis document consists of the risk management plan for the following project: Project Title Project Management Office (PMO) Project Sponsor Jane Doe, Vice President Jim Thompson, Director Project Manager (Email); (Phone) +1 (555) 555-5555 Tim Smith Bob Park Project Team Members Jill Smith Ted Donahue Amanda Hunter Project Start Date October 1, 2013 Project End Date November 1, 2014
  2. 2. ProcessThe Project Manager will serve as the Risk Manager for the project and will work with theproject team to ensure that risks are actively identified, analyzed, and managed throughoutthe life of the project.The diagram below outlines the process that the project manager will follow: Identify, Score Share Risks and Rank with the PMO Project Risks Communicate Add Risks to Risks in the Project Status Report ScheduleIdentificationThis section will describe when risks will be identified and how the project team will goabout identifying them.Risk identification should include an evaluation of environmental factors, a review of theorganizational culture and a detailed audit of the project plan. Careful attention shouldalso be given to project deliverables, assumptions, constraints, WBS, cost/effort estimates,resource plans, and other key project documents.
  3. 3. A few common ways of identifying risks include:  Expert interviews  Meetings  Reviewing information from past projects  Conducting a risk assessmentScoringAll risks identified will be assessed to determine the range of possible outcomes. UseDemand Metric’s Risk Assessment Tool to assess the consequence and likelihood of eachrisk, and to develop risk mitigation plans.This qualification will allow the project manager to identify which risks are the top risks topursue and respond to and which risks can be ignored. He/she can then prioritize theorganizations efforts by building risk avoidance and mitigation strategies for risks that havea high probability of occurring and that will have a significant impact on the project.The following is a breakdown of probability and impact:Likelihood  Almost Certain – Greater than 70% probability of occurrence  Possible – Between 30% and 70%  Unlikely – Below 30%Consequence  Catastrophic – Risk that has the potential to greatly impact cost, schedule or performance  Moderate – Risk that has the potential to slightly impact cost, schedule or performance  Insignificant – Risk that has relatively little impact
  4. 4. MitigationFor each risk that will be mitigated, the project team will identify ways to prevent the riskfrom occurring or reduce its impact or probability of occurring by selecting one or more ofthe following approaches to address it:  Avoid – eliminate the threat by eliminating the cause  Mitigate – Identify ways to reduce the probability or the impact of the risk  Accept – Nothing will be done  Transfer – Make another party responsible for the riskMonitoringThe level of risk will be continuously tracked, monitored and reported on by the ProjectManager in the project status report throughout the duration of the project. This includes,but is not limited to, the identification of trigger conditions for each risk.Any changes to the project will be analyzed for their possible impact using the ProjectChange Request Form. The project sponsor, project team and key stakeholders will benotified of important changes to risk status.Risk RegisterThe project team will continue to use Demand Metric’s Risk Assessment Tool on anongoing basis to log risks, assess the impact and probability of each risk, and to developrisk mitigation plans.Based on the identified risks and timeframes, each risk should be added to the project planand an owner should be identified. The risk owner will be responsible for providing anupdate on the status of their assigned risk at the bi-weekly project team meeting for theirrisk’s planned timeframe.
  5. 5. ApprovalProject Sponsor: Other Key Stakeholder:Date: Date:Name: Name:Signature: Signature:Executive: Project Manager:Date: Date:Name: Name:Signature: Signature: