Pr oj ec tRi skPl anI ns t r uct i ons Project Risk Plan Instructions ARi ski ki sanunc er t ai nev entt hati fi toc cur shasanegat i v ei mpac tont hepr oj ec t ’ sobj ec t i v es . Ri s k si nc l udet hepos si bi l i t yofaner r or ,omi s si on,oran yot herundes i r abl ee vent .I nman y c as es ,s t eps( mi t i g at i on)c anbet ak ent or educ eei t hert hepr obabi l i t yorc ons equenc esoft he t hr eat . The Pr oj e ctRi s kPl a n usesa aR Ri s kRe gi s t e r ( Ex c el s pr eads hee t )t or ec or di nf or mat i onabout pr oj ec tr i s k s . Ri skMana geme ment i st hepr oc es sofi dent i f y i ng,as ses si ng,andt hens el ec t i ngt her i s ksy ou wa ntt odos ome t h i n ga bo ut-mi t i gat i ng.Thel as ts t epi st hemi t i gat i ng ( pl anandt r ac k)oft he hi gh r i s ksr e l at edt oy ourpr oj ec t .
T abl e1i dent i fi est het y pi c al c ol umnsofar i s kr egi s t erus edt odoc umentt hei dent i t yand as ses smentofal l r i s k s.
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Risk Name
Risk Description
Probability of Occurrence
Impact Level
Risk Score
T abl e1–Ri s kRegi s t er
As i mpl epr oc es sf ori ni t i at i ngaRi s kPl an,ut i l i z i ngt heRi s kRegi s t erf ol l ows : Identify Project Risks. The project team can hold a brainstorming session. Prior to the brainstorming session, each team member reviews the project charter, current work plan, and other project plan details to help identify the things that could go wrong with the project. Risks come from many sources, including: Assumptions. Assumptions. onstraints !e.g., funding, personnel, time". #ntegration with other #T systems. #ncompatibilities between technical standards. Poorly documented business processes. • • • • •
$uring the brainstorming session, the project team %uickly reviews the charter, work schedule, and budget and identify the project risks. They record the risks names on a large sheet of paper, or other techni%ue on walls, so the team members can read them.
Pr oj ec tRi skPl anI ns t r uct i ons
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Pr oj ec tRi skPl anI ns t r uct i ons
I dent i fi edr i s k sar edes c r i bedandcommuni c at edt omanagementi nt hef or m ofr i s ks t at ement s . Ar i s ks t at ementpr ov i dest hec l ar i t yanddes cr i pt i v ei nf or mat i onr equi r edf orar eas onedand def ens i bl eas ses smentoft her i s k' soc cur r enc epr obabi l i t yandar easofi mpac t .Awel l wr i t t en r i s ks t at ementc ont ai nst wocomponent s .The yar eas t at emento ft heCondi t i onPr es entandt h e As s oc i at edRi s kEv e nt( ore v ent s ) . Assess Project Risks. &or each identified risk, the team determines the probability of the risks occurring. The team also scores the impact of each risk, if it were to occur, on a ' to ( scale !') low, ( *igh". Select Project Risks to mitigate. The ne+t step is to select which risks re%uire some action to occur ) mitigation. The two halves !probability and impact" are combined to create a total risk score. The weighting of each half is up to the project team. A simple criteria to use is: • • •
A Risk core e%ual to or great than '.--. ! /ultiplied by the #mpact core". A Probability of 0ccurrence of (- percent or greater. An #mpact 1evel of 2 or greater.
Mitigating the Project’s High Risks: 0nce the #$, Assessment and election are performed using the first sheet, copy the names of the projects that meet the criteria of *igh Risks onto the /itigation !handle" sheet. *ere the project team identifies a plan to reduce the probability and3or impact of each high risk.
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Risk Name
Risk Owner
Risk Mitigation ction
Risk !rigger
Risk Mitigation Score
Table 4 5 Risk /itigation Plan
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Pr oj ec tRi skPl anI ns t r uct i ons
Project Risk Register Terms Ge ne r a lI nf or ma t i on
Pr o j e c tNa me–Ent ert hepr opernameus edt oi dent i f yt hi spr oj ec t . Pr epar edBy –Ent ert h enameoft heper s onmak i ngt hi sr eq ues t .T y pi c al l yt hepr oj ec tMana ger Da t eLa s tMo di fi e d –Ent ert hedat et her i s kr egi s t erwasl as tupdat ed. A.Ri skI dent i ficat i on
Li s tal l pot ent i al r i s kst hatc oul di mpac ty ourpr oj ec t .As ses st hepr obabi l i t yofoc cur r enc eandt hei mpac t l ev el . Ri skName–En t e rana mef o re a c hr i s kev a l u at e d. Ri s kDes c r i p t i on–Gi v eadet ai l eddes c r i pt i onoft heev entt haty ouar eev al uat i ng.
Pr obabi l i t yofOc c ur r enc e–Ent eraper c ent ageofpr obabi l i t yt hatt hi sr i s kwi l loc curi fnot hi ngi sdonet o pr ev enti t . I mp ac tL ev e l–Ent erar at i ngf r om 1( l owi mpac t )t o5( gr eati mpac t ) . Ri s kSc o r e–Cal c ul at et h eRi s kSc or eb ymul t i pl y i ngt hePr ob abi l i t yPer c ent ageb yt h eI mpac tLe v el .
High Risk Mitigation Plans Ent erdat ai nt hi ssec t i onf oreac hr i s kl i s t edi nRi s kRegi s t erasmeet sany“ Hi gh”Ri s kc r i t er i a: • • •
A Risk core e%ual to or great than '.--. A Probability of 0ccurrence of (- percent or greater. An #mpact 1evel of 2 or greater.
Ri sk#andName–COPYANDPASTEBOTHf r om sheet 1( Ri skRegi st er ) Th eo wn eri st h e i ndi v i dual r es pons i bl ef ort heac t i onst omi t i gat et hi sr i s k. Ri s kMi t i gat i onAc t i on–Pr o vi deabr i efs ummar yoft hes t epsy ouca nt ak et or educ et heov er al l Ri s k Sc or e( pr obabi l i t yori mpac tl ev el ) . Ri s kTr i gger –Des cr i bet her i s kt r i gger .Ar i s kt r i ggeri sas i gnt hatar i s khasoc cur r edori saboutt o oc c ur .Tr i gger sma ybedi s c ov er eddur i ngt her i s ki dent i fi cat i onpr oc es sandmoni t or edast hepr oj ec ti s e x ec ut ed.Onc et her i s kt r i ggeroc c ur s ,t h epr oj ec tt e am needst oi mpl emen tar i s kr es pons e.
Pr oj ec tRi skPl anI ns t r uct i ons
T ot al Mi t i gat i onCos t –Thes pr eads heetwi l l addupt het ot al c os tofr i s kmi t i gat i on.
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