Risk Management Plan
“Risk Management Plan” is an output for the process “Plan Risk management”.
The risk management plan is a component of the project management plan and describes how risk management
activities will be structured and performed. The risk management plan includes the following: – Methodology. Defines the approaches, tools, and data sources that will be used to perform risk
management on the project.
– R oles and responsibilities. Defines the lead, support, and risk management team members for each
type of activity in the risk management plan, and clarifies their responsibilities.
– Budgeting. Estimates funds needed, based on assigned resources, for inclusion in the cost baseline and
establishes protocols for application of contingency and management reserves.
– Timing. Defines when and how often the risk management processes will be performed throughout the project life cycle, establishes protocols for application of schedule contingency reserves, and establishes
risk management activities for inclusion in the project schedule.
– Risk categories. Provide a means for grouping potential causes of risk. Several approaches can be used, for example, a structure based on project objectives by category. A risk breakdown structure (RBS) helps the project team to look at many sources from which project risk may arise in a risk identification exercise. Different RBS structures will be appropriate for different types of projects. An organization can use a previously prepared custom categorization framework, which may take the form of a simple list of categories or may be structured into an RBS. The RBS is a hierarchical representation of risks according to their risk categories. An example is shown in Figure 11-4.
Beta and triangular distributions are frequently used in quantitative risk analysis. The data shown in the figure on the left (Beta Distribution) is one example of a family of such distributions determined by two “shape parameters”. Other commonly used distributions include the uniform, normal and lognormal. In these charts the horizontal (X) axes represent possible values of time or cost and the vertical (Y) axes represent relative likelihood.
Beta Distribution Triangular Distribution 0,1
“Risk Management Plan” is an input for the process “Identify risks”.
Key elements of the risk management plan that contribute to the Identify Risks process are the assignments of roles and responsibilities, provision for risk management activities in the budget and schedule, and categories of risk, which are sometimes expressed as a risk breakdown structure (Figure 11-4).
“Risk Management Plan” is an input for the process “Perform Qualitative Risk Analysis “.
Key elements of the risk management plan used in the Perform Qualitative Risk Analysis process include roles and responsibilities for conducting risk management, budgets, schedule activities for risk management, risk categories, definitions of probability and impact, the probability and impact matrix, and revised stakeholders? risk tolerances. These inputs are usually tailored to the project during the Plan Risk Management process. If they are not available, they may be developed during the Perform Qualitative Risk Analysis process.
“Risk Management Plan” is an input for the process “Perform Quantitative Risk Analysis “.
The risk management plan provides guidelines, methods, and tools to be used in quantitative risk analysis.
“Risk Management Plan” is an input for the process “Plan Risk Responses”.
Important components of the risk management plan include roles and responsibilities, risk analysis definitions, timing for reviews (and for eliminating risks from review), and risk thresholds for low, moderate, and high risks. Risk thresholds help identify those risks for which specific responses are needed.
This definition was found in the PMBOK V5
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