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Project Risk Management Plan
Project Risk Management Plan
Project Name
Customer
Project Number
Prepared By
The Risk Management Plan is created in the Planning Process Group. The Plan defines how the project
team will manage the Risk management process. The Plan defines the project team’s infrastructure for how
they will identify, qualify, quantity, respond, and control risks. The Plan will provide processes, procedures,
and tools to increase the probability of opportunities and minimize the probability and/or impact of a threat
that could jeopardize the project objective(s).
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Project Risk Management Plan
Document Change History
Created by:
Change Date
Created on Date:
Changed by
Reason Description
Comment
Approver
The Risk Management Plan is created in the Planning Process Group. The Plan defines how the project
team will manage the Risk management process. The Plan defines the project team’s infrastructure for how
they will identify, qualify, quantity, respond, and control risks. The Plan will provide processes, procedures,
and tools to increase the probability of opportunities and minimize the probability and/or impact of a threat
that could jeopardize the project objective(s).
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Project Risk Management Plan
Project Risk Management Plan Roadmap
1.0 Risk Methodology ..................................................................................................................... 4
1.1 Risk Identification .................................................................................................................. 4
1.1.1 Risk Key Terms.............................................................................................................. 4
1.1.2 Risk Tools ..................................................................................................................... 5
1.2 Risk Qualification .................................................................................................................. 5
1.3 Risk Quantification ................................................................................................................ 5
1.4 Risk Response ...................................................................................................................... 6
1.5 Risk Monitoring and Control .................................................................................................. 6
2.0 Roles and Responsibilities ....................................................................................................... 7
3.0 Budgeting.................................................................................................................................. 7
4.0 Timing ....................................................................................................................................... 7
5.0 Scoring...................................................................................................................................... 8
6.0 Threshold and Tolerances ........................................................................................................ 8
7.0 Reporting Format ...................................................................................................................... 9
8.0 Tracking .................................................................................................................................... 9
9.0 Policy Statement ..................................................................................................................... 10
10.0 Approval Signatures ............................................................................................................. 10
11.0 Appendix and Attachments.................................................................................................... 10
The Risk Management Plan is created in the Planning Process Group. The Plan defines how the project
team will manage the Risk management process. The Plan defines the project team’s infrastructure for how
they will identify, qualify, quantity, respond, and control risks. The Plan will provide processes, procedures,
and tools to increase the probability of opportunities and minimize the probability and/or impact of a threat
that could jeopardize the project objective(s).
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Project Risk Management Plan
1.0 Risk Methodology
This section should contain the project team’s approach to the overall activities of risk
management process.
1.1 Risk Identification
This section should contain the project team’s approach to identifying risks for the project. This
section should define how and when the Risk Identification activity will be executed on the
project, the forms used to capture risks, the types of questions, checklists, which will be used to
guide the risk identification activity.
For example, The Project team will document all Risks using the Project Risk Identification Form.
Each Risk will be monitored and controlled using the Project Risk Register. The Project team will
engage in a number of Risk identification workshops, interviews, and other activities to uncover
and analyze potential opportunities and threats to the project objectives(s).
1.1.1 Risk Key Terms
This section should contain a list and definitions of key terms used as part of the risk assessment
process.
For example, how does the project team define?
 Risks is defined as
o An uncertain event occurrence whose effect could have a positive or negative
impact of the project objective(s).
o Risks are characterized by three elements:
 Event
 Probability
 Loss (Amount at stake)
o Risks will be identified in two types:
 Business Risk
 Insurable Risk
The Risk Management Plan is created in the Planning Process Group. The Plan defines how the project
team will manage the Risk management process. The Plan defines the project team’s infrastructure for how
they will identify, qualify, quantity, respond, and control risks. The Plan will provide processes, procedures,
and tools to increase the probability of opportunities and minimize the probability and/or impact of a threat
that could jeopardize the project objective(s).
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Project Risk Management Plan
1.1.2 Risk Tools
This section should contain a list of tools that the project team will use to identify risks.
For example, The following tools will be used to identify risks throughout the project: Interviews,
Questionnaires, Assumption analyses, and Crawford Slip.
Brainstorm
Crawford Slip
Ishikawa
Interview
Delphi
Other
1.2 Risk Qualification
This section should contain a description of the processes that the project team will use to qualify
a Risk. This section should describe how the project team will work together to prioritize and
analyze risks in order to focus on the high-priority risks that may influence or impact the project
objectives.
For example, the Project team will qualify risks by measuring the severity, probability, and
detection of each risk. The Project team will focus resources around risks that are rated higher in
terms of a combined score in severity, probability, and detection. At the end of this process, the
project team will accomplish these deliverables:
 Overall risk ranking of the project.
 List of prioritized ranks (based on project objectives).
 List of risks for additional analysis in the Risk Quantification process.
1.3 Risk Quantification
This section should contain a description of how risks are assigned numerical values based on
impact: severity, probability, and detection.
For example, the Project team will utilize the list of prioritized risks and align them against the
project schedule and budget. At the end of this process, the project team will accomplish the
following:
 Prioritized list of quantified risks.
 Probability analysis of risks on the project.
 Probability of achieving project objectives based on quantified risks.
 Recommendation to management for monitoring and controlling.
 Updates to the Project Risk Register.
The Risk Management Plan is created in the Planning Process Group. The Plan defines how the project
team will manage the Risk management process. The Plan defines the project team’s infrastructure for how
they will identify, qualify, quantity, respond, and control risks. The Plan will provide processes, procedures,
and tools to increase the probability of opportunities and minimize the probability and/or impact of a threat
that could jeopardize the project objective(s).
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Project Risk Management Plan
1.4 Risk Response
This section should specify when Risk Response planning should occur on the project and contain
the level of detail in the Risk Contingency Plan should have to document what will be done to
reduce and/or confine the possible risk event.
For example, Risk Response development will occur after the project risks have been documented
and assessed during the Risk Qualitative and Quantitative activities. The Risk Contingency plan
should contain enough detail to establish:
 Sequence of activities or tasks need to successfully execute the plan;
 The cost implication of the proposed plan;
 Key personnel needed to execute the plan; and
 A trigger to detect a risk event.
1.5 Risk Monitoring and Control
This section should contain the mechanism and process that the project team will use to monitor
and control risks.
For example, The Project team will review risks during each project review. The Project team will
conduct risk audits, variance and trend analysis, and performance data throughout the project
lifecycle to ensure compliance with this Risk Management plan.
The Risk Management Plan is created in the Planning Process Group. The Plan defines how the project
team will manage the Risk management process. The Plan defines the project team’s infrastructure for how
they will identify, qualify, quantity, respond, and control risks. The Plan will provide processes, procedures,
and tools to increase the probability of opportunities and minimize the probability and/or impact of a threat
that could jeopardize the project objective(s).
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Project Risk Management Plan
2.0 Roles and Responsibilities
This section should contain the names and decision-making responsibilities of Stakeholders on
the project related to their activity in the Risk Management Process.
3.0 Budgeting
This section should contain the budget resources assigned to risk monitoring, containment,
and/or contingency planning.
4.0 Timing
This section should contain a description of the frequency and the project phase at which the Risk
Management Process will be executed for the entire lifecycle of the project.
The Risk Management Plan is created in the Planning Process Group. The Plan defines how the project
team will manage the Risk management process. The Plan defines the project team’s infrastructure for how
they will identify, qualify, quantity, respond, and control risks. The Plan will provide processes, procedures,
and tools to increase the probability of opportunities and minimize the probability and/or impact of a threat
that could jeopardize the project objective(s).
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COMPANY LOGO
Project Risk Management Plan
5.0 Scoring
This section should contain the standards used in the naming convention, scoring, and
interpretation of risks.
6.0 Threshold and Tolerances
This section should contain the criterion used to assess whether a risk is within or outside the
threshold limits for a Stakeholder.
For example, please reference the table below:
Based on:
 Risk Type
 Risk Category
 Stakeholder
Threshold
High
Medium
Low
Priority
Red
Amber
Green
Cost
<$10,000
<$1,000-$9,999
>$1,000
Response
Immediate Management Attention
Project Manager Discretion
Project Manager Discretion
The Risk Management Plan is created in the Planning Process Group. The Plan defines how the project
team will manage the Risk management process. The Plan defines the project team’s infrastructure for how
they will identify, qualify, quantity, respond, and control risks. The Plan will provide processes, procedures,
and tools to increase the probability of opportunities and minimize the probability and/or impact of a threat
that could jeopardize the project objective(s).
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COMPANY LOGO
Project Risk Management Plan
7.0 Reporting Format
This section should contain the reporting needed of the project Stakeholders. Please refer to the
Communication Management Matrix to view the project Stakeholder information distribution
methods. This section should also specify the level to which a risk will be captured, tracked, and
reported.
For example, The Project team will track risks per:
 Project Number/Name
 Business Area
 Customer
 Work Breakdown Structure code/Name
 Activity
 Risk type
 Risk Category
Reporting to upper management will be grouped by:
 Customer
 Division
 Business Area
 Project Name
 Risk Category
8.0 Tracking
This section should contain the project team’s means of monitoring whether a risk trigger has
occurred, risk plan has been executed (and a description of its effectiveness), or risk event has
been documented in the project records.
The Risk Management Plan is created in the Planning Process Group. The Plan defines how the project
team will manage the Risk management process. The Plan defines the project team’s infrastructure for how
they will identify, qualify, quantity, respond, and control risks. The Plan will provide processes, procedures,
and tools to increase the probability of opportunities and minimize the probability and/or impact of a threat
that could jeopardize the project objective(s).
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COMPANY LOGO
Project Risk Management Plan
9.0 Policy Statement
This section should contain the project team’s Risk Policy Statement for the project. This section
should take the convert the Stakeholder tolerances into a Policy statement. The Policy should be
concise, measurable, and have a practical application to provide the project team guidelines to
identify acceptable and unacceptable behavior.
Sample Policy: “We will always communicate accurate information to the customer. Failure to
communicate honest, reliable, and accurate information to the customer will result in a release
from the project and could result in dismissal from the company.”
10.0 Approval Signatures
This section should contain the signature of the person(s) with responsibility to update and
approve.
Name
Date
Comments
11.0 Appendix and Attachments
This section should contain any hyperlinks to supporting details.
The Risk Management Plan is created in the Planning Process Group. The Plan defines how the project
team will manage the Risk management process. The Plan defines the project team’s infrastructure for how
they will identify, qualify, quantity, respond, and control risks. The Plan will provide processes, procedures,
and tools to increase the probability of opportunities and minimize the probability and/or impact of a threat
that could jeopardize the project objective(s).
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