Purpose of risk management planning is to identify project risks and their sources, Analyze their impacts and probability of occurrence, and define strategies to mitigate those risks.
Process Entry/Exit Criteria
- The pre-development schedule is prepared and approved.
- Risks are identified, analyzed and prioritized.
- Risk mitigation and contingencies approaches are defined.
- Risk Management Plan is referred to in Project Plan
- Project Schedule (pre-development section)
- Proposal/Statement of Work
- Estimation Sheet
- Risk Management Plan
- Project Plan (Risk Management section)
- Project Manager with the help of Development Team Lead and Quality assurance Team Lead identifies the project risks using risk taxonomy questionnaire provided in the Risk Management Plan template.
- Project Manager specifies the source and category of each risk
- Project Manager assigns impact and probability of occurrence to each identified risk following the Guidelines for Risk Management provided in the Risk Management Plan template.
- Project Manager calculates the exposure of each risk following the Risk Analysis guidelines are given in the Risk Management Plan template
- Project Manager decides the risk response technique according to risk exposure
- Project Manager defines approaches to avoid, mitigate or transfer a risk on the basis of the selected response technique.
- Project Manager defines contingency plan and trigger for contingency plan according to selected risk response technique.
- Project Manager assigns personnel for each risk as Risk Owner to implement mitigation as well as the contingency plan.
- Project Manager sends the risk management plan to the Development Manager for review and approval.
- Development Manager reviews the risk management plan and sends review comments (if any) to Project Manager.
- Project Manager updates and resubmits the risk management plan to the Development Manager.
- Development Manager approves the risk management plan and sends an approval email to Project Manager
- Project Manager communicates the defined action items to the assigned risk owners.
- During the course of a project, if a new risk is identified, Project Manager documents it in the Risk Management Plan and the whole process gets repeated
Guidelines for Risk Management Planning
- Reference of Risk management plan will also be provided in the Project Plan, as the Risk Management Plan is a sub-plan of overall Project Plan.
- Detailed guidelines of risk management planning are provided within the Risk Management Plan template