10 Components of Risk Management Plan

10 Components of Risk Management Plan

 

A risk management plan is a document that describes the team’s approach to managing risks. It determines the methodology, approaches and tools that will be used, documents the roles and responsibilities of those involved, identifies the budgeting and scheduling for risk management activities among others.

 

Here are some of the components of a risk management plan…

 

Components of a risk management plan

#1 Methodology

The methodology for a risk management plan defined the tools, approaches and data sources that may be used to perform risk management on a project.

 

#2 Risk and Responsibilities

This defines the lead, support and risk management team members for each type of action in the risk management plan.

 

#3 Probability and Impact

The scale of probabilities and impact defined for use in qualitative risk analysis using terms such as “very unlikely” to “almost certain” with respective values in members for these terms for instance “very unlikely” may have .05 as probability value.

 

#4 Probability and Impact Matrix

These are the predefined matrix with risk priority areas earmarked, which has a product of impact value on the X-axis and probability value on the Y-axis.

 

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#5 Revised stakeholder tolerance

These revised stakeholder tolerances may need to be updated as a result of planning for risk.management.

 

#6 Budgeting

A budget for project risk management should be established and included in the risk management plan.

 



#7 Tailoring 

This defines how often risk management activities will be established and included in the risk management plan for the project.

 

#8 Risk categories

This has to do with documentation of risks such as Risk breakdown structure or categories from previous projects which will help the project manager to identify and organise risks.

 

#9 Reporting formats

This has to do with the process of determining how the deliverables of this process will be documented, reported and communicated throughout the project.

 

#10 Tracking

This component of the risk management plan documents how risk activities will be recorded and audited throughout the lifetime of the project.

 

 

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