How to Plan for Project Risk Management

Do you plan to manage risk for your project? YES! Then include risk management in your Project Management Plan.

1. Determine the level of risk assessment for your project (Exhibit 1-6).

2. Incorporate risk management activities into the project schedule (Exhibit 1-7).

3. Make risk management an agenda item for regularly scheduled project meetings.

4. Communicate the importance of risk management to the entire project team.

5. Establish the expectation that risk will be managed, documented, and reported

 Tips for Risk Management Planning

·         Risk assessment should begin early, but there must be enough known about the project to understand what is being assessed. This will be to varying levels of detail depending on the point in project development at which the risk assessment is conducted (planning, scoping, design/PS&E); hence, schedule risk assessments at appropriate times.

·         Allow time in the schedule for prep activities; this includes review and QA/QC of project schedules and cost estimates at appropriate times (Exhibits 1-8 and 1-9).

·         Allow a budget for risk assessment, risk management, and risk response activities.

·         Report on the status of project risk in regularly scheduled project meetings.

·         Know the organization’s tolerance for risk. Are Project Managers (and upper management) risk averse or risk seeking? How much risk is the organization willing to accept? Knowing the answers to these questions will help with risk management and contribute to the decision-making process when determining risk response actions.

·         Contact the Strategic Analysis and Estimating Office (SAEO) and discuss the possibility of combining the risk assessment workshop with a value engineering (VE) study

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