Often times, a Risk Management Plan is also inclusive of the Project Management Plan. Assume, that the risk management process has already been identified. Now, you will need to develop a risk register to assess risk throughout the project life cycle.
- Risk register – central repository for all risks identified by the project or organization and for each risk includes information on risk category, risk name, risk ranking, risk probability, impact, risk score, mitigation actions, contingency plan, risk owner, and assessment date.
- Risks should be evaluated in terms of cost, communication, and change management.
A Risk Management Plan is a document that a project manager prepares to foresee risks, estimate impacts, and define responses to issues. It also contains a risk assessment matrix.
The Project Life Cycle refers to a logical sequence of activities to accomplish the project’s goals or objectives.Project activities are grouped into phases so that the project manager and the core team can efficiently plan and organize resources for each activity.By planning activities by stages the project manager can objectively measure achievement of goals and justify their decisions to move ahead, correct, or terminate.
Risk Register is a tool commonly used in Project Management to assess and manage Project Risk. It is also used for organizational risk assessments.
It acts as a central repository for all risks identified by the project or organization and, for each risk, includes information such as risk probability, impact, counter-measures, risk owner and so on. It can sometimes be referred to as a Risk Log.
Strategic planning, an essential first step in the development of a results-based accountability system, is defined as the process of addressing the following questions:
- Where are we?
- What do we have to work with?
- Where do we want to be?
- How do we get there?
Risk Breakdown Structure is a tool that helps identify the risks for a project. It is a checklist that a project manager or project team can go over to ensure they reviewed all possible sources of risks and identified the risks arising out of those.
Risk identification is the process of determining risks that could potentially prevent the program, enterprise, or investment from achieving its objectives. It includes documenting and communicating the concern.
Risk assessment is the determination of quantitative or qualitative value of risk related to a concrete situation and a recognized threat.A risk assessment is a process to identify potential hazards and analyze what could happen if a hazard occurs. A business impact analysis (BIA) is the process for determining the potential impacts resulting from the interruption of time sensitive or critical business processes.
A systematic reduction in the extent of exposure to a risk and/or the likelihood of its occurrence. Also called risk reduction.
A Risk Matrix is a matrix that is used during Risk Assessment to define the various levels of risk as the product of the harm probability categories and harm severity categories.This is a simple mechanism to increase visibility of risks and assist management decision making.
Be sure to plan for change at the beginning of the project. All projects will require some sort of changes during its lifetime, plan ahead by having the process already defined and documented. Change management is critical to completing your projects on schedule and on budget. Whether you’re working on your PMI PMP certification or an experience project manager, we’re sure you’ll find this cost management plan template helpful.
Change control is a systematic approach to managing all changes made to a product or system.The purpose is to ensure that no unnecessary changes are made, that all changes are documented, that services are not unnecessarily disrupted and that resources are used efficiently.