final project risk

RISK MANAGEMENT PLAN

[PROJECT NAME]

Project Number:

Construction Manager:

Project Manager:

Project Engineer:

Revision:

( This page can be tailored and need only contain roles and title rather than name and title. Think about who would be the best individuals to review and approve. You are the author. )

Author:

[Name – Title]* ID Number Date

Reviewer:

[Name – Title]* ID Number Date

Reviewer:

[Name – Title]* ID Number Date

Approver:

[Name – Title]* ID Number Date

* Refer to Project Management Review and Approval Matrix.

1.0 PURPOSE/BACKGROUND

1.1 The Risk Management Plan defines the detailed approach for implementing the Risk Management process for a specific project or program. The risk management plan should be completed in the initial planning stages of the project. The risk management plan should define the project specific risk management objectives and priorities, roles and responsibilities, Project Specific Risk Tolerance Levels for schedule and cost, and risk reporting requirements. Refer to 16-000-000-0028, “Risk Management Procedure.”

2.0 APPROACH

2.1 Determine roles and responsibilities of project team as it relates to managing project risks.

2.2 Determine frequency and method of risk review.

2.3 Determine Probabilities and Impact Matrix values and document in Risk Plan.

2.4 Setup Probability and Impact Matrix values.

2.5 Determine how the risks shall be identified.

Input details as necessary:

( The approach section should describe how you are going about managing risks for your project and who is involved, how often they meet, how risks get created, updated and closed. The Generic steps listed above are very basic, you can replace this whatever you deem appropriate or you can adjust those steps as you see fit. )

3.0 RISK MANAGEMENT ROLES AND RESPONSIBILITIES

( This section describes everyone’s responsibilities if they have a role in risk management for the project. Team members are listed as they would be expected to identify new risks. The financial analysts and schedulers may not and you may wish to place in some other roles instead. )

3.1 Project Manager (PM)

3.1.1 determines at which level Risk Register will be developed; Project Group, Project, or Major Area of Work (MAW) and document decision in Risk Management Plan.

3.1.2 Reviews applicable project plans to identify risks (i.e., Project Charter and Project Stakeholder Engagement Plan).

3.1.3 Develops and maintains Risk Management Plan and Risk Register.

3.1.4 Clarifies project specific roles and responsibilities for executing Risk Management Plan process.

3.1.5 Defines Project Specific Risk Tolerances for ranking risk likelihood and impacts to Project, Project Group or MAW.

3.1.6 Collaborates with Financial Analyst and Scheduler for risks that exceed system established threshold for Project, Project Group or MAW.

3.1.7 Schedules and facilitates Risk Management meetings for update with Project Team and Stakeholders.

3.1.8 Assigns an owner for each risk.

3.1.9 Reviews Risk Register in no less than once per month (more frequently is preferred).

3.1.10 Reports progress on risks and escalates as necessary.

3.1.11 Holds Risk Owners responsible for assigned risks and Risk Register updates.

3.1.12 Updates schedule with risk related activities as appropriate.

3.1.13 Makes recommendations for risks to be added to Risk Thought Starter List or Common Risks.

3.1.14 Notifies other Project Managers or Department Managers of cross-functional risks or risks that impact the organization.

3.1.15 Submits Lessons Learned related to Risks to Lessons Learned database in.

3.1.16 Acquires approvals to Risk Management Plan revisions as applicable.

3.1.17 Ensures project plans are updated if a risk affects the plan, as necessary.

3.1.18 Closes risk(s) during project as needed.

3.1.19 Closes all risks at project completion.

3.1.20 Ensure programs/projects comply with Risk Management processes, procedures and tools.

3.1.21 Update Issues Tracking log when risk events occur and become issues.

3.2 Project Team (PT)

3.2.1 Attend Risk Management meetings for the development, review and update of the Risk Register.

3.2.2 Identify new risks as they present themselves.

3.2.3 Update Issues Tracking log when risk events occur and become issues.

3.3 Risk Owners (RO)

3.3.1 Attend Risk Management meetings for development, review and update of Risk Register.

3.3.2 Identify new risks as they present themselves.

3.3.3 Document and monitor risk drivers for assigned risks.

3.3.4 Determine and document likelihood and impacts for assigned risks.

3.3.5 Develop and implement Risk Response Strategies for assigned risks.

3.3.6 Develop and implement Contingency Plan(s) for assigned risks.

3.3.7 Report progress on risk and escalate as necessary.

3.3.8 Classify and categorize assigned risks.

3.3.9 Monitor assigned risks on a regular basis.

3.3.10 Document lessons learned for assigned tasks.

3.3.11 Recommend assigned risks for closure.

3.3.12 Document issues for assigned risk.

3.4 Financial Analyst (FA)

3.4.1 Attend Risk Management meetings for development and update of Risk Register.

3.4.2 Provide input and financial information for Risk Register and Risk Management Plan as applicable.

3.4.3 Complete Financial Analysis section of Risk Register when the risk score exceeds system established threshold.

3.4.4 Monitor and adjust the contingency funding for project based upon risk for the project.

3.4.5 Ensure adequate funding is available in project budget to allow for Response Strategy activities.

3.5 Scheduler

3.5.1 Attend Risk Management meetings for development and update of Risk Register.

3.5.2 Provide input and schedule information for Risk Register and Risk Management Plan as applicable.

3.5.3 Complete Schedule Analysis section of Risk Register when the risk score exceeds system established threshold.

3.5.4 Monitor and adjust the schedule for project based upon risks for the project.

3.5.5 Ensure that adequate resources are available in project schedule to allow for Response Strategy activities.

3.6 Key Role Assignments

( This should match above as well. )

Role	Assigned Team Members
Project Manager	See Cover
Risk Owners	See Risk Register for Specific Owners
Project Team	See Project Organizational Chart
Financial Analyst	See Project Organizational Chart
Scheduler	See Project Organizational Chart

Input details as necessary:

4.0 FORMAT FOR RISK DOCUMENTATION

4.1 Project Manager and Risk Owners shall utilize the tools in for documenting and maintaining risks and opportunities.

4.2 Define where in the risk register will be maintained. The Project Manager has the discretion to establish a risk register in at either the Project Group, Project or Major Area Work Level.

Input details as necessary:

( You should describe if the risks will be captured using a risk tool, a word document, an excel spreadsheet, or simply in meeting minutes. You can define the risk format and how risks are documented. )

5.0 FREQUENCY OF REVIEW AND UPDATES

5.1 Status of the Risk Register will be reviewed at a Minimum of monthly as established by the Project Manager (more frequently is advised). Project Manager, Risk Owner Financial Analyst and Project Scheduler are required to attend the meeting.

( This section is focused on the frequency of updating and you can talk about where. It could be a formal risk meeting, daily check in meetings or monthly deep dive. )

5.1.1 Define Frequency (monthly, bi-monthly, weekly)

Input frequency requirements:

Input details as necessary:

6.0 PROBABILITY AND IMPACT MATRIX – SAMPLE ONLY (PM to complete matrix)

Likelihood	Low	Medium	High
	Unlikely	Likely	Almost Certain
Impacts	Low	Medium	High
Schedule	No Impact to Critical Path or Field Work	Potential to affect Critical Path or Field Work	Certain to affect Critical Path or Field Work
Cost	Less Than	$50,000	$50,000	to	$100,000	Greater Than	$100,000
Quality	Minor impact to product deliverables	Moderate impact to product deliverables	Major impact to product deliverables
Safety	No impact to worker safety	Minor impact to worker safety	Major impact to worker safety
Scope	<1%	2% to 5%	>5%

( This section must be tailored to your project and must match the risk register impact worksheet in the Excel risk template. The most notable that will need to be customized is the ‘cost’ line as the values should make sense for your size project and what you would consider a high and low value. )

7.0 RISK CATEGORY

7.1 Risks may be categorized using pre-established categories, for example:

· Project Type

· Work Type

· Category

· Knowledge Area

· COE

· Platform

· Phase

Category may also be typed in as necessary.

Input details as necessary:

( This section should be tailored to match your project and how you want to categorize your risks in your risk register. )