Project risk management plan template excel

Project risk management plan template excel

Project risk management plan template excel
Project risk management plan template excel

Project risk management plan template in excel

The RMP describes how risk management will be structured and performed on the project. It becomes a subset of the project management plan, The RMP comprises four main sections of risk assessment:
  1. Risk Identification 
  2. Risk Analysis (Qualitative & Quantitative) 
  3. Risk Response Strategy
  4. Risk Monitoring and Control

Risk Identification Template 

The Risk Identification determines which risk might affect the project and documents their characteristics. Risk identification is an iterative process because new risks may become known as the project progresses thought its life. The frequency of iterations and who participates in each cycle will vary from case to case. 

The project team is involved in this process to develop and maintain a sense of ownership of, and responsibility for, risks and associated risk response strategy. The Risk Identification process leads to one of the two main segments of the Risk Analysis section.

The Risk Identification section includes:

1-Priority, this is the ranking of the risks by priority and occurs subsequent to the risk analysis.

2-Risk Status defines the status of the risk event.  The user has three status scenarios to choose from such as:
  • Active, when the risk is being actively monitored and controlled.
  • Dormant, when the risk is low priority but may become high priority in the future.
  • Retired, when the risk is demised for any reason.

3-Risk Identification number is a unique number assigned to the risk for tracking purpose. 

4-Date Identified and Project Phase, represents the date when the risk was first identified and the phase of the project when the risk was first identified.  Valid entries for the project phase are:  Scoping, Design/PS&E and Construction. 

5-Risk Event (threat/opportunity), present a summary definition of the risk.  It clarifies the risk outcome:
  • If the risk outcome provides negative impact to the project (higher cost and/or longer duration) the risk is named a Threat, which should be minimized.
  • If the risk outcome provides positive impact to the project (lower cost and/or shorter duration) the risk is named an Opportunity, which should be maximized. 

6-SMART Column provides a detailed description of the risk. Including information on the risk that is Specific, Measurable, Attributable, Relevant and Time bound. It describes the consequences of the risk to scope, schedule, budget or quality.

7-Risk Trigger presents symptoms and warning signs that indicate whether each risk is likely to occur.  This information is used the determine when to implement the Risk Response Strategies. 

8-Impact Area identifies the primary impact to the scope, schedule, budget, or quality.

9-Affected MDL/WBS Level 2 process identifies which WBS element(s) will be modified as part of the response strategy.

Qualitative Risk Analysis Template

Qualitative Risk Analysis includes methods for prioritizing the identified risks for further action, such as Quantitative Risk Analysis (See A Policy for Cost Risk Assessment) or Risk Response Planning. Qualitative Risk Analysis assesses the priority of risks by using their probability of occurring, corresponding impact on project objectives if the risks do occur, as well as other factors such as the time frame and risk tolerance of the project constraints of scope, schedule, budget, and quality. 

Time critical risk related actions may magnify the importance of a risk. Qualitative Risk Analysis is a method for establishing priorities for Risk Response Planning and may lead into Quantitative Risk Analysis, when required. 

(10-12)The Probability and Impact Matrix is a common way to determine whether a risk is considered low or high by combining the two dimensions of a risk; it probability of occurrence, and its impact on objectives if it occurs. High risks that have a negative impact (threat) on objectives may require priority action and aggressive response strategies.  Low risk Threats may not require proactive management action beyond being placed on a watch list. Similarly, high risk opportunities that can be obtained most easily and offer the greatest benefit should, therefore, be targeted first. Low risk opportunities should be monitored.

13-Risk Owner is the name of the person or office responsible for managing the risk event.

Risk Response Planning

Risk Response Planning (strategy) is the process of developing options, and determining actions to be taken to enhance opportunities and reduce threats to the projects objectives. Planned risk responses must be appropriate to the significance of the risk, cost effective, timely, realistic within the project context, agreed upon by all parties involved, and owned by a responsible person.

(14-15) The Project Manager and Team agree upon the appropriate response strategy and design specific actions to implement that strategy for each risk. These strategies and actions include:
  • Avoidance: The team changes the project plan to eliminate the risk or to protect the project objectives from its impact. The team might achieve this by changing scope, adding time, or adding resources (thus relaxing the so-called “triple constraint”). These changes may require upper management approval. Some risks that arise early in the project can be avoided by clarifying requirements, obtaining information, improving communication, or acquiring expertise.
  • Transference: Risk transference shifts the ownership and responsibility for its management to a third party; it does not eliminate it. Transferring liability for risk is most effective in dealing with financial risk exposure.
  • Mitigation: The team seeks to reduce the probability or consequences of a risk event to an acceptable threshold. Taking early action to reduce the probability and/or impact of a risk occurring on the project is often more effective than trying to repair the damage after the risk has occurred. Mitigation costs should be appropriate, given the probability of the risk and its consequences.
  • Acceptance: The Project Manager and team decide not to change the project plan to deal with a risk, or cannot identify a suitable response action. A contingency plan may be developed or no action may be taken, leaving the project team to deal with the risk as it occurs.

Risk Monitoring and Control

Risk Monitoring and Control tracks identified risks, monitors residual risks, and identifies new risks, ensuring the execution of risk plans, and evaluating their effectiveness in reducing risk. Risk Monitoring and Control is an ongoing process for the life of the project. The list of project risks changes as the project matures, new risks develop, or anticipated risks disappear.

Periodic project risk reviews repeat the tasks of identification, analysis, and response strategies. The project manager regularly schedules project risk reviews, and ensures that project risk is an agenda item at all Project Team meetings. Risk ratings and prioritization commonly change during the project lifecycle.

(16-17) Insert any comments that would be helpful for risk tracking and control.

If an unanticipated risk emerges, or a risk’s impact is greater than expected, the planned response strategy and actions may not be adequate. The project manager and the Project Team must perform additional response Strategies and actions to control the risk.

Risk control involves:
  • Choosing alternative response strategies 
  • Implementing a contingency plan 
  • Taking corrective actions
  • Re-planning the project

The task manager assigned to each risk reports periodically to the project manager on the effectiveness of the plan, any unanticipated effects, and any mid-course correction that the Project Team must take to mitigate the risk.

General notes: The RMP also serves as a nice project performance measurement tool.

Project risk management plan example

Project risk management plan example
Project risk management plan example

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