Developing a Risk Response Plan for Projects
An effective risk response plan for projects describe the response Strategies for each identified risks for projects. The selected-response strategies should take advantage of opportunities and reduce the probability and impact of threats to project objectives.
Here are some of the guidelines for performing a risk response plan for projects.
There is a need for you to examine each identified risk to determine it’s a cause and how it may affect the project objectives. You need to brainstorm possible strategies for each risk.
You have to identify which project stakeholders can be assigned the responsibility for risk. Involve people in your risk response planning.
You need to also write down every idea mentioned regardless of the feasibility or cost of such an idea.
#2 Choose Response Strategy
You need to choose the response strategy that is most likely to be effective for each identified risk. You need to ensure that the chosen risk response strategy is: enough to bring the risk threshold below the organisation’ s limit. It must be appropriate to the severity of every risk. Also, whatever risk response strategy you are choosing must be cost-effective.
When planning your response strategy, you have to come up with a response plan that is timely enough to be successful. It must be realistic within the context of the project and it has to be owned by a responsible person.
#3 Organisational Risk threshold
Also, if you are unable to bring a risk rating below the organisational risk threshold, you need to ask your Sponsor for help. You have to develop specific actions for implementing the chosen strategy for your project.
#4 Backup Strategies
There is a need for you to identify backup strategies for every risk that you have identified. You must have what you planned to do in case the original risk response plan that have in place failed.
#5 Contingency reserve
So also, you need to determine the amount of contingency reserve needed to deal with accepted risks for your project.
You have to know how much your contingency reserve will cost as well as how much time will your contingencies add to your overall project schedule.
#6 Unknown risks
Apart from planning for known risks for your project, you have to determine how much of contingency reserve you should set aside for unknown risks that you have not been able to identify.
#7 Consult Risk Management plan
There is a need for you to consult a risk management plan for the description of the content and format of the risk response plan. You have to include the following in your content: A description of the identified risks along with the area of the project affected.
You need to identify the risk owners and their assigned responsibilities. You need to also consider the qualitative and quantitative risk response strategies for the project.
You need to also look at the response strategies selected and the specifics actions for implementing the strategies for the project. You have to look at the level of residual risks expected to remain after the response strategies are implemented.
You must consider the budget and schedule for the project as well as the contingency plans and fallback plan for all accepted risks with high outputs.
#8 Incorporate plans
You have to incorporate your risk response plan into the overall project plan so that the strategy can be implemented and monitored. As the project strategies progress through the lifecycle, examine trends in the qualitative and quantitative analysis result that may guide your response strategies.
You and your team have been asked to create a new line of exercise equipment. Your Project team reviews all documentation for risks. From these documents, the team identifies three risks that need risk response planning because the first risk deals with the negative loss of time to possible worker injuries, the team decides to employ risk transference, pay a premium for Insurance.
The second risk involves a scenario in which the new products could be first to market. To address this opportunity, the team settles on risk exploitation by hiring more staffs to ensure the positive outcome are guaranteed.
After a lengthy review, the tea. Is unable to determine a course of action for the final risk, which is the possibility that a key patent may not be approved in time for production.
Therefore, the team develops a contingency plan and document all changes in the risk register, risk management plan, and project plan
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