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Risk Process

Risk Management Plan - Process
Insert Project Name
Risks are potential events that, if they occur, could negatively impact a project. Every project carries with it a certain amount of risk due to the complexity and environment in which projects are managed. Risks may come from a variety of sources, including: new technologies, regulatory uncertainty, or assumptions made during planning. The Risk Management process seeks to control project risks by: • Defining the approach/method used by the project team to manage risks • Proactively identifying risks early in the project • Assessing the project’s exposure to the risk by evaluating its impact and probability • Specifying the project’s risk tolerance by establishing a threshold for tracking risks • Understanding the risk’s impact on scope, schedule, cost, quality, etc. • Developing an appropriate response strategy for each risk identified • Continuously monitoring the risk environment and responding as necessary Risk Management should not be confused with Issue Management. Risks are potential conditions or events that may occur or impact the project. Issues, however, are conditions or events that have already occurred and must be adequately handled. Some risks identified may become issues when they materialize (or are “triggered”) during the course of the project. Formats to consider for formulating risk statements: • IF __risk event___ occurs, THEN specific impact 1 and specific impact 2 (if applicable) will occur • IF __risk event___ occurs, THEN another event will occur and result in specific impact 1, specific impact 2, and specific impact x (if applicable) Risk response strategies to consider:
	• Avoidance – Avoiding risks that have been identified can be accomplished through a variety of techniques. Better clarification of the scope or product description may help to avoid the risk. Planning activities may also be altered to include additional resources, schedule time, or a different approach. Avoidance may also be as simple as a decision not to become involved in the risk situation, or to take action to withdraw from it. • Transference – At times, it is possible to share the impact of a risk event with a customer, third party vendor, another internal business unit, etc. Transference is the shifting of the risk responsibility and/or burden to another party. It does not eliminate the probability of the risk event, but it could position all parties to better control, avoid, or mitigate the risk event. This technique is typically used when strategizing financial exposure. • Mitigation – Mitigation is a risk response strategy that decreases the risk to an acceptable level either by lowering the consequences of a risk event, or by a combination of reducing the probability that a risk event will occur and reducing the consequence of that event. Mitigation techniques may include adopting less complex processes, or adding more resources or time. • Acceptance – Acceptance of a risk indicates that the risk is within acceptable limits, or that contingency plans are sufficient to ensure project success even if the risk event occurs. Accepted risks typically require the development of a contingency plan (an alternative course of action should the risk event occur). This may include the allocation of a contingency allowance, or reserve, in terms of finances, time, or resources.

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Roles_Responsibilities

Risk Management Plan - Roles & Responsibilities
Insert Project Name
Directions: Describe the responsibilities for the planning and execution of project risks for the following roles. Insert names into identified roles.
ROLE	RESPONSIBILITIES
Project Sponsor(s)	- approve risk response strategy - approve closure of risk
Business Owner(s)	- approve risk response strategy - approve prioritization of risks based on probability & impact
Project Manager	- schedule and conduct risk review in meetings - facilitate identification/prioritization/planning discussions - assist with risk response planning - assist with managing risk action plan - implement or designate risk management strategy
Project Team	- participate in risk review during meetings - assist with risk response planning - prioritize risks - take on role as Risk Owner as appropriate
Project Stakeholders	- approve risk response strategy
Risk Owner	- research a specific risk and provide the Project Manager / Project Team with research results and risk management options such as mitigation or contingency plans - determine appropriate risk response strategy - if designated, implement the approved risk management strategy - manage risk action plans - provide timely updates to the risk log

Risk Management Plan

Risk Analysis

Risk Management Plan - Analysis
Insert Project Name
Directions: Use this analysis worksheet to determine if the perceived risks identified are critical enough to warrant additional action and tracking. In general, risks with an exposure rating of 6 or higher should be added to the Risk Log. List at minimum 6 Risks.
	Impact Criteria (the consequence of the event)		Probability Criteria (the likelihood of an event occurring)
	Low - Relatively minor impact in functionality or usability		Low - Risk event less likely, or not expected, to occur
	Med - Reduction in functionality or usability requiring customer approval		Med - Risk event may or may not to occur
	High - Major impact in functionality or usability unacceptable to customer		High - Risk event more likely, or is expected, to occur
REF #	Risk Event Statement* (Risk Description)	Comment / Update	Area(s) of Impact Schedule Cost, Scope Quality	Impact 1-Low 2-Med 3-High	Probability 1-Low 2-Med 3-High	Exposure Impact x Prob	Rank Order	Add to Risk Log? (Y/N)
1	Ex. If the Facility does not complete tasks timely and accurately, then the project may experience delays, additional costs and rework.		Schedule	2	3	6	1	Y
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*Formats to consider for formulating risk event statements:
IF ____ risk event ____ occurs, THEN specific impact 1, and specific impact 2 (if applicable) will occur.
IF ____ risk event ____ occurs, THEN another event will occur and result in specific impact 1, specific impact 2, and specific impact x (if applicable) will occur.

Risk Management Plan

Risk Log

Risk Management Plan - Response Planning, Monitoring & Control (Risk Log)
Insert Project Name
Directions: Identify the strategy for minimizing the effects of the risk to a level where it can be controlled and managed, and to ensure that project objectives are achieved. Use the log below to plan, monitor, and track project risks. At minimum 6 risks need to be listed.
(Note: This log may not be appropriate for all projects. Some projects may require risks to be tracked in Clarity or SharePoint)
REF #	Risk Title	Risk Description	Status Open Close	Comment/Update	Assigned To (Owner)	Due Date	Date Complete	Area(s) of Impact Schedule Cost, Scope Quality	Impact 1-Low 2-Med 3-High	Probability 1-Low 2-Med 3-High	Exposure Impact x Prob	Trigger	Response Strategy Acceptance Avoidance Transference Mitigation	Response Plan	Logged By	Date Identified
1	Ex. Timely completion of facility tasks	Ex. IF the Facility does not complete tasks timely and accurately, THEN the project may experience delays, additional costs and rework.	Close	7-12-17: Reviewed work plan with ops team	John Smith	7/31/17	7/18/17	Schedule	2	2	4	Facility not meeting due dates as established on the project plan	Mitigate	Communicate dependency of the facility being prepared to go live at the designated time. Inform Facility and Division management of a facility that is at risk of creating delays.	John Smith	6/18/17
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Risk Management Plan