Risk Management 11.1 Plan Risk Management

Quick Link to Risk Management

Risk Management 11.6 Monitor and Control Risks

Risk Management 11.5 Plan Risk Responses

Risk Management 11.4 Perform Quantitative Risk Analysis

Risk Management 11.3 Perform Qualitative Risk Analysis

Risk Management 11.2 Identify Risks

Risk Management 11.1 Plan Risk Management

Risk management planning is the process of deciding how to conduct risk management activities for a project. Careful planning will almost always improve the results from the other five processes of risk management and is, therefore, time well spent. Risk planning should begin during the earliest stages of project initiation and should be completed early in the project planning process

Plan Risk Management
Inputs	Tools	Outputs
1.       Project scope statement 2.       Cost management plan 3.       Schedule management plan 4.       communication management plan 5.       Enterprise environment factors 6.       Organizational process assets	1.       Planning meetings and analysis	1.       Risk management plan

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Six Key Inputs for Plan Risk Management:

1.       Project scope statement: Describes the basic nature of the work and therefore, whether it is inherently risky (Section 5.2.3.1).

2.       Cost management plan: Define how risk-related contingency and management reserves will be handled (section 7.0, introduction to cost management).

3.       Schedule management plan: Defines how risk-related contingency and management reserves will be handled (section 6.0).

4.       Communication management plan: Define how risk information will be identified, tracked and shared with appropriate stakeholders (section 10.2.3.1).

5.       Enterprise environment factors: Attitudes toward risk and the extent of risk tolerance in the organization are major influences on the risk management plan. These attitudes may be evident in the organization’s risk policies.

6.       Organizational process assets: Organizational process asset that may influence risk planning includes: any templates or predefined risk approaches.

·         Standard templates

·         Risk categories

·         Roles, responsibilities and common definitions

·         Risk statement formats

One Key Tool for Plan Risk Management:

1.       Planning Meeting and Analysis: The single tool is planning meeting attended by key stakeholders, the project team and any other subject matter experts. Important areas to discuss include any relevant cost and schedule information (contingency or reserve amounts), assignment of responsibilities and definitions of probability and impact.

One Key Output for Plan Risk Management:

1.       Risk management plan: The single output of risk planning is the risk management plan. This plan addresses how risk identification, qualitative and quantitative analysis, response planning and monitoring/controlling will be handled. The plan may include the following:

·         Methodology

·         Roles and responsibility

·         Budgeting

·         Timing

·         Risk categories: may employ information from the RBS (Risk Breakdown Structure)

·         Definition of probability and impact: how to describe or measure the likelihood that an event will occur and the effect on project objectives if it does occur.

·         Probability and impact matrix (more detail under qualitative analysis)

·         Revised stakeholder tolerances: Risk planning may cause shifts in how much risk is considered acceptable for a specific project.

·         Reporting formats

·         Tracking