Risk management plan

Risk management plan

A Risk Management Plan is a document prepared by a project manager to foresee risks, to estimate the effectiveness, and to create response plans to mitigate them. It also consists of the risk assessment matrix.

A risk is defined as "an uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives." [PMBOK Guide 3rd Edition, Glossary pg. 373.] Risk is inherent with any project, and project managers should assess risks continually and develop plans to address them. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks.

Most critically, risk management plans include a risk strategy. Broadly, there are four potential strategies, with numerous variations. Projects may choose to:
* Accept risk; simply take the chance that the negative impact will be incurred
* Avoid risk; changing plans in order to prevent the problem from arising
* Mitigate risk; lessening its impact through intermediate steps
* Transfer risk; outsource risk to a capable third party that can manage the outcome

See also

* Risk management
* Project management
* Project Management Professional
* Event chain methodology

References

External links

* [http://www2.gsu.edu/~wwwpmo/risk_management.html Georgia State University: Risk Management]
* [http://www.pmhut.com/project-management-process-phase-2-planning-create-risk-management-plan Creating The Risk Management Plan (template included)]


Wikimedia Foundation. 2010.

Игры ⚽ Поможем решить контрольную работу

Look at other dictionaries:

  • environmental risk management plan — noun → environmental management plan. Abbrev.: ERMP …  

  • Risk management — For non business risks, see risk, and the disambiguation page risk analysis Example of risk management: A NASA model showing areas at high risk from impact for the International Space Station. Risk management is the identification, assessment,… …   Wikipedia

  • environmental management plan — noun a document which lays out guidelines to be followed to ensure that no damage is done to the environment while at the same time securing the future of an industry, development project, etc. Abbrev.: EMP Also, environment management plan,… …  

  • Management plan — A management plan is a document created to communicate the management aspects of an endeavor in order to establish a coordinated effort. The design, structure, content, development, implementation, and use of the management plan is always… …   Wikipedia

  • Project management plan — The project management plan is a document that describes the project management system used by a project team. The objective of a project management plan is to define the approach to be used by the Project team to deliver the intended project… …   Wikipedia

  • Asset Management Plan — An Asset Management Plan (AMP) is a tactical plan for managing an organisation s infrastructure and other assets in order to deliver an agreed standard of service. Typically, an Asset Management Plan will cover more than a single asset, taking a… …   Wikipedia

  • Enterprise risk management — In business, enterprise risk management (ERM) includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives. ERM provides a framework for risk management, which… …   Wikipedia

  • Operational risk management — See also: Risk management The term Operational Risk Management (ORM) is defined as a continual cyclic process which includes risk assessment, risk decision making, and implementation of risk controls, which results in acceptance, mitigation, or… …   Wikipedia

  • Enterprise Risk Management — COSO Le COSO est un référentiel de contrôle interne défini par le Committee Of Sponsoring Organizations of the Treadway Commission. Il est utilisé notamment dans le cadre de la mise en place des dispositions relevant des lois Sarbanes Oxley ou… …   Wikipédia en Français

  • Disaster Risk Management in East Asia — EAP DRM Team placement within EAP Region s Activities The East Asia Sustainable Development Department (EASSD) has delegated the Urban Development Sector Unit (EASUR) as the focal point for disaster risk management (DRM) coordination in the… …   Wikipedia

Share the article and excerpts

Direct link
… Do a right-click on the link above
and select “Copy Link”