Project Risk Management Plan for Word

Project Risk Management Plan for Word

Project Risk Management Plan for Word
Project Risk Management Plan for Word

Download Free Project Risk Management Plan for Word

Table of Contents:
1-Overview
  • Project Overview
  • Project Scope
  • Project Objectives
  • Risk Management Objectives
2-Overview of Risk Management Process
  • Establish the Context
  • Identify Phase
  • Analyse and Evaluate Phase
  • Treat Phase
  • Review, Re-evaluate and Communicate Phase
3-Deliverables
  • Deliverables Checklist
  • Roles & Responsibilities
4-Risk Management Procedure
  • Frequency of review
  • Flowchart of risk process on site
5-Appendices
  • Scoring Scheme & Probability Impact Diagram
  • Risk Breakdown Structure in ARM

Overview of Risk Management Process

The application of a formal ‘Risk and Opportunity Management Process’ provides a structured, logical way of identifying, assessing and treating the risks and opportunities to the successful completion of a project  This process provides secondary benefits that allow the analysis of potential Project outcomes – thus enhancing early warning, project certainty and the management of contingency throughout the Project Lifecycle.

The process outlined herein conforms to Leighton Contractors Risk and Opportunity Process held in the Leighton Management System (Our Way) and Australian Standard AS/NZS ISO 31000:2009, and other best practice guidance. For more information on the Detailed Level Business Processes for ‘Manage Project Risk’ in Our Way see – http://ourway.lc.local/business-excellence/enterprise-risk-management/index.htm.

2.1-Establish the Context:

The Project Manager is ultimately accountable for the execution of the Risk & Opportunity Management Process, however, a Risk Champion is appointed by the Project Manager to assist with the co-ordination and facilitation of this. A Risk and Opportunity Strategy Workshop is held to formulate how the management of risk and opportunity will be executed throughout the project/operation. The workshop will aim to determine:
  • The roles and responsibilities of the Project Team in executing risk and opportunity management 
  • The Risk Breakdown Structure (RBS) to be built within Active Risk Manager (ARM) 
  • Define the project's scoring scheme by reviewing the tender scoring scheme and update where appropriate
Risk Management Process
Risk Management Process


2.2-Identify Phase

Throughout the project/operation, the Project Team and Risk & Opportunity Owners are accountable for the continuous identification of risks and opportunities applicable to the successful delivery of their scope of works. 

These risks and opportunities are reviewed by the Project Management Team on a regular basis for validity and approved in ARM with a status of 'active'. 

The project team must identify risks and opportunities against all types of risks - not solely commercial and/or SHE risks. 

At LCPL, we have categorised these types as “Enterprise Capital’ elements (which are also reflected in ARM as “risk categories”) i.e.:

Enterprise Capital Element

Description

Our People

Our people are what enable us to transform our clients’ needs to reality. We must protect our people from risks that can affect their safety, well-being and performance. We look to grow their abilities and provide opportunities to develop their careers within LCPL.

Our Assets

Our assets relate to the physical assets such as plant and equipment. We must ensure they are available and perform as required.

Our Intellectual Property

Our intellectual property relates the collective knowledge of how we create value and deliver results. We must be able to retain and protect our intellectual property as this is a key element of our competitive advantage.

Our Relationships with our Clients and Partners

The trust and respect of our clients and partners are paramount in both delivering on current work and generating future opportunities. We must ensure that we are able to deliver on our promises.

Our Reputation

The ‘Leighton’ name and the strong positive reputation it carries must be protected at all times. We must be clear and consistent in how we conduct our business so our stakeholders and the marketplace know what to expect when engaging with us.

Our ‘Licence to Operate’

To be able to operate (conduct business activities) in the markets we wish to, we must ensure we satisfy all relevant obligations. These extend beyond our regulatory obligations and include our social obligations.

Our ‘Balance Sheet’

Our business requires capital to achieve our objectives. Accordingly we must ensure we are able to access capital (our balance sheet) as and when required.

 

Similarly we must be able to account for our activities in an accurate and timely manner to ensure we are able to make effective decisions.

 

2.3-Analyse and Evaluate Phase

Risk & Opportunity Owners must ensure risk items are assessed for Probability of Occurrence, and the possible impacts (e.g. Cost, Time, Safety, Reputation, and Environment). Refer to the project/operation's Risk and Opportunity Scoring Scheme revised during the Risk and Opportunity Strategy Workshop at Project Start-up. 

Assessments for probability of occurrence, cost impact and time impact must be completed quantitatively. For Safety, Reputation, and Environment impact assessments a qualitative approach is required. 

2.4-Treat Phase 

Treatment Plan Owners are accountable for developing high level, proactive, treatment plans in ARM for those risks and opportunities they have been assigned. The treatment plan details a series of actions that are assigned to resources with due by dates. All actions are aimed at treating the risk or opportunity to which they apply, i.e. altering the probability of occurrence and/or the impacts.

2.5-Review, Re-evaluate and Communicate Phase 

The Risk & Opportunity Owner is accountable for ensuring their risks and opportunities are continuously reviewed to ensure assessments remain aligned to all current project/operation assumptions and treatment plan statuses. This is especially important due to the analysis and reporting of the Project’s risk exposure and provisioning as part of the LCPL month end reporting process.

Deliverables 

3.1-Deliverables Checklist

Deliverable

Description

Owner

Status

Develop a Project Risk Management Plan

Details project/operation specific strategy for executing risk and opportunity management throughout the Delivery Phase.

 

 

Assign a risk champion

A risk champion is on the project leadership team and ensures the risk process occurs in the project

 

 

Project Risk Register established in ARM

Project Risk Register established from the Tender Risk Register and updated for the project.

 

 

Project Risk Register reviewed in ARM

Project Risk Register verified and updated as required.

 

 

SMS Contingency reflective of ARM Impact Analysis Report

Once the tender risk register has been updated, the new contingency would be recommended based on the level of risk now associated with the works

 

 

Schedule E reflective of updated project risk register

Part 1 of Schedule E (ARM risks) now reflects the new risk profile opposed to the original tender risks and opportunities.

 

 

Risks and opportunities identified and recorded in ARM

Hold workshops, on a quarterly or milestone basis to ensure validity of the risk register

 

 

Risks and opportunities assessed and recorded in ARM

Ensure Risks and opportunities identified are up to date and continually assessed to ensure they are fully understood to determine levels of contingency required for the successful delivery of LCPL projects and operations.

 

 

Risk and opportunity treatment plans and actions detailed and recorded in ARM

Have a process to ensure that high level, proactive, treatment plans in ARM are up to date and reviewed with special focus on the series of individual action lists are progressed.

 

 

Summary of the key risk and opportunity information and applicable reports for inclusion in the Project Monthly Report

Have a section of the Project Monthly Report for Risk & Opportunity Management.

 

 

 

3.2-Roles & Responsibilities

Risk Management Procedure 

4.1Frequency of review

Focus Area

Lead

Frequency

ARM Report used

Outputs utilised

 

 

 

 

 

 

 

 

 

 

 

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