Plan Risk Management 

Purpose:

To define the approach, tools, techniques, roles, and resources required to effectively manage risk.

• How will we identify risks?

• How will we analyze and prioritize them?

• Who is responsible?

• What level of risk is acceptable?

Key Inputs

• Project Charter (high-level risks, objectives)

• Project Management Plan (existing components)

• Stakeholder Register

• Enterprise Environmental Factors (EEF) (market conditions, regulations)

• Organizational Process Assets (OPA) (risk templates, lessons learned)
  
  

Tools & Techniques

1. Expert Judgment - Engaging risk experts, senior managers, or domain specialists.

2. Data Gathering

• Brainstorming

• Interviews

• Checklists
  
  

3. Data Analysis

• Stakeholder risk tolerance analysis

• Risk probability and impact definitions
  
  

4. Meetings

• Workshops to align stakeholders on risk approach and expectations.

Key Output: Risk Management Plan

The Risk Management Plan is the primary output and includes:

1. Risk Strategy / Approach

• Methodology for managing risks

• Alignment with project objectives

2. Roles & Responsibilities

• Defines who does what

• Example:

  • 1. Project Manager → overall accountability

    2. Risk Owner → responsible for specific risks

 3. Risk Categories

• Structured using a Risk Breakdown Structure (RBS)

  • 1. Examples:

       1. Technical risks

       2. External risks

       3. Organizational risks
          
          

4. Probability & Impact Definitions

• Standard scales (e.g., High/Medium/Low or numeric scales)

• Ensures consistency in evaluation

 5. Risk Appetite & Thresholds

• Defines acceptable levels of risk

  • Example:

    1. Cost overrun tolerance: ±5%

    2. Schedule delay tolerance: 2 weeks
       
       

 6. Reporting Format

• Risk register format

• Risk dashboards and escalation procedures

7. Budget & Resources

• Allocation for risk management activities

• Contingency reserves

8. Timing

• Frequency of risk reviews

• Integration with project meetings