10 Steps in Creating a Risk Management Plan

9 Steps in Creating a Risk Management Plan




Creating a Risk Management Plan is one of the tasks that every Project manager need to perform.  A Risk Management Plan is a document that describes the main approach to manage risk for a project. It determines the methodology, approaches and tools that will be used; identifies the budgeting and the scheduling for risk management activities and list the risk categories.


In creating a risk management plan, you need to follow the following steps: 



There is a need for you to collect the cost, schedule, and communication management plans to know how the budget, schedule, cost contingencies and management reserves will be communicated and assessed. 

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There is a need for you to consider how you will organise project risk, management team. You have to consider assigning a Risk Officer to coordinate all risk management activities. While it is noteworthy that it is not all organisations that have Risk Officers, it may be a helpful option that a Project Manager needs to consider. 

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There is a need for you to conduct risk planning meetings with team members and stakeholders in order to identify risks and plan on how high risks will be mitigated for the project.


There is a need for you to conduct risk planning meetings with team members and stakeholders in order to identify risks and plan on how high risks will be mitigated for the project.


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The Project Manager also needs to establish a budget in order to mitigate risks. He needs to identify expertise and other measures that are needed in order to bring project risks under control. 



As part of your risk management strategy, you need to consult your organisation risk management policy and make sure that your risk planning complies with the policy. If your organisation has a risk management plan in place, use it and make a modification to meet the specific need to of your project.



As part of your strategy, you need to determine and describe some of the approaches, tools and data sources that may be used to perform risk management activities for this project. You have to ask questions such as how the risk will be identified? Will you conduct brainstorming sessions? Will you use the Delphi technique? Will you make use of Subject Matter Expert among others?


How will identified risks be sourced and analysed so that effective response strategies can be developed? Is there organisational policy mandating a specific scoring and prioritization method that you are going to use? 



As part of your risk management plan strategies, you have to determine and describe the schedule for performing risk management activities. He needs to know the appropriate time that risk audit will be performed as well as testing some of the project risk response strategies. 



There is a need for you to also document how your team and stakeholders are going to respond to risks. You are to answer such question as what tool will be used by the team to store risk information and task responses. 


You also need to look at how your risk response efforts will be communicated to the project stakeholders. 


You will also have to determine how the lesson learned from your risk management activities will be documented for the benefit of future projects. 


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If an organisation, Sponsor, or customer has specific guidelines or requirements regarding risk thresholds, this information should be included in your risk management plan for the project.


A typical example…

A Project Manager has been asked to draft a risk management plan for a project. He is provided with the organisation’s risk management policy which contains information concerning the organisation’s risk threshold and scoring and interpretation methods. While organising the risk management team, she assigns a risk officer to set up a risk database for the plan. 


The Project Manager arranges for the team to have planning meetings. The team determines a budget and decided that weekly brainstorming meetings will be used to identify risks. The organisation has a policy outlining scoring.  It turns out that all scoring must be done twice by independent parties and the results arranged together. He decided that all information will be entered into the risk database for documentation and future project programs. 


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