How to Plan Risk Management for Various Projects

Plan Risk Management for Various Projects

Risk management is the process of conducting risk management activities for a project. This ensures the degree, visibility and type of risk management. It relates risks with the importance of project for any organization. Risk management preparation is important task during whole project life cycle. This task is important to communicate with stakeholders with respect to ensuring risk management process. Risk management plan includes the inputs activities, tools and techniques and output. Input activities comprise project management arrangements, project charter, stakeholder register, enterprise environmental factors and organizational process assets. In tools & techniques the analytical techniques, expert judgment and meetings are involved. While risk management plan is the outcome after performing inputs parts and tool & techniques activities. To success the projects risk management process, vigilant planning and clear arrangement play a successful role. Provision of sufficient resources and time, planning play a vital role to establish bases for the evaluation of various risks. In the risk management process, it is compulsory to take it account in the starting of project planning and it should continue till the completion of project.

Inputs of plan

First input is called project management plan. In which all management plans and baselines are included to make the risk management arrangement actionable. It is also a component of project management plan which includes actual scenario of scope, schedule and cost areas of project impure by the various risks. High level requirements along with high level project description and high level risks are the part of project charter which is also uses to mitigate the plan risk management. All concerned stake holders and their defined roles related to projects are developed for the stake holders register. Another important element which is necessary for the plan risk management process is called enterprise environmental factors. This factor deals with the tolerances, thresholds and risk attitudes normally. This factor expresses the level of project risks which an organization is facing during project lifecycle. Authoritative levels of decision making, standard templates, defined concepts and terminologies, categories of risk, formats of standards associated with risks, roles and responsibilities of project concerned and lesson learnt from achievements and failures are the parts of organizational process assets. These assets interfere into the risk management plan.

Tools and techniques

In context with the risk management plan, various analytical techniques can be used. Admired techniques which can be used are categorized in any sequence. Stakeholder risk appetite and tolerance connected with project is used to check the quality and grade of analyzing the profile of stakeholder risks. High level of risk assessments associated with the risk management arrangement may be analyzed by performing risk scoring sheets. Appropriate resources can be allocated after the receiving risk assessment results along with the management activities focusing on the mitigation of risk. Specialized well trained and informative individuals from concerned areas of project can be helpful to implement the risk management map on the bases of their expertise and judgments. These individuals could be the professional and technical associates, consultants, groups form industries, small business enterprises businessmen, stakeholders of project, senior management of organizations and mangers of projects which have already worked on similar projects in past. Another tool is the project planning meetings. These meetings are attended by the project managers, project stake holders, project team members and those authorized organization’s individuals who got the responsibility participate in risk management planning meetings. Budgets of projects and related costs are intended in these meetings at high-level. These meetings also defined the elements of risk management cost and its scheduling activities. Elements of risks can be categorized as a level of risks, risk probabilities by its type and their impacts on project. Impact and probability matrix may also be shared in this meeting.

Outputs

All the above activities formulate the implementable plan of risk management. This arrangement is compromises of methodology of plan, roles responsibilities of attached individuals, budget of plan and most important is the timing of plan implementation. Timing of plan relates the processes during the complete project life cycle, defined protocols to mitigate the risks and those activities which are related with project scheduling.

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