PURPOSE OF THE RISK MANAGEMENT PLAN
According to PMBOK guide (2013) risk management plan is a component of the project management plan that describes how risk management activities will be structured and performed. It includes; methodology, roles and responsibilities, budgeting, timing, risk categories, definition of risk probability and impact, probability and impact matrix, revised stakeholders’ tolerances, reporting formats and tracking.
RISK IDENTIFICATION
This will involve the project team, appropriate stakeholders. All the factors, events and risks likely to affect this project will be evaluated. They will be documented in the risk register.
RISK ANALYSIS
A model for analyzing risk and its outcome will be generated together with the risk register. Responsibilities will be assigned to risks together with the action to be taken.
RISK RESPONSE PLANNING
Any of the following approaches will be used to address any risks arising in the project:
Avoid – dealing with the risk by avoiding the cause
Mitigate – look for ways of dealing with the cause of the impact
Accept – there is nothing to be done to either the cause nor the impact
Transfer – move responsibility to a third party (e.g. insurance, outsourcing)
RISK MONITORING, CONTROLLING, AND REPORTING
This stage of monitoring will go on throughout the life of the project. Any risk which will be identified to have an impact on the project will be reported immediately as part of the project status reporting process for this project. All project change requests and change orders will be analyzed for their possible impact to the project risks.
References
Guide, A. (2013). Project Management Body of Knowledge (PMBOK® GUIDE). In Project Management Institute.
