Project Management Framework
Execution - Risk Management

How to use the Risk Management Plan

Project Risk Management involves identifying, analyzing and mitigating project risks and should be started as soon as the project begins to form. For each risk, identify who is in charge of managing the risk and outline triggers and corresponding activities to be implemented to either prevent the risk from becoming a reality or to lessen the impact should a risk occur. The project becomes less vulnerable when the entire project team is familiar with the risk management process and can assist in continually monitoring for triggers and possible risks. If a risk becomes inevitable, it should be evaluated for inclusion in Issue or Change Management plans.

For Best Results

• Perform preventive and/or mitigation activities on all high ranking risks. Paying particular attention to preventive measures could eliminate risk altogether.
• Review the project continuously for emerging risks or triggers.
• Train the entire project team on risk management and encourage their active participation in identifying and mitigating risks.
• Include risk and trigger identification, risk review, and risk mitigation as standing agenda items on regularly scheduled project meetings.
• Use the Work Breakdown Structure (WBS) to look for obvious triggers or risks.
• Outline a mitigation strategy for every high ranking risk and map to available resources.
• Use a risk management worksheet to track triggers, rank risks and list mitigation activities and if necessary, submit a Change Request Form.
• Communicate to stakeholders and sponsors when risk impact could change the project scope or impact project resources.
• Review Lessons Learned and Quality Assurance Reports to look for possible triggers or risks.
• Group and sequence similar mitigation activities together for efficient implementation.
• Encourage an environment that fosters open communication where project members feel at ease conveying project risks and consequences. (Don't shoot the messenger!)
• Ensure risk mitigation plans are integrated with project plans (e.g. WBS, Change Management, Issue Management) when those plans affect project schedules, budgets and deliverables.

Also Consider

• Transforming any large-scale risk mitigation activity into a separate process improvement project.
• Listing triggers in the WBS at the point they are most likely to occur and footnoting the contingency plans for resolution so they are immediately available.
• Using a database for storing, maintaining and creating reports of risk data.
• Doing nothing. Weigh the cost of the risk action against the level of risk.
• Documenting risks under lessons learned.
• Documenting the rationale used when closing a risk.
• Factoring in risks outside of the project itself including the political or cultural climate as well as current or impending reorganizations within your agency or with contracted resources.
• Enlisting a liaison between IT and the business community to assist in addressing cultural risks.

Related Links:
Risk Management Plan
Risk Management Plan Template
Risk Management Log

Checklists

RISK MANAGEMENT
Are preventive and/or mitigation activities being performed on high ranking risks?
Is a risk management worksheet or log available to help with the identification, management and ranking of risks throughout the life of the project?
Is the project being continuously reviewed for emerging risks or triggers?
Is additional management sponsorship required to achieve a risk resolution?
Do resources need to be coordinated for performing mitigation activities?
Are there interdependencies between risk mitigation activities? If so, is there a sequence in which they should be implemented.
Has the Risk Management Plan been reviewed by the project team and all internal and external stakeholders?