Risk Management Plan
Project Name: Lithuanian Construction Project
Learner Name: Gaylon Barcom
Course Name: PM-FPX5334
Date: November 11, 2019
Table
... [Show More] of Contents
Section 1 – Introduction to the Plan______________________________________________________________________________3
1.1 Benefits of Risk Management________________________________________________________________________________________3
1.2 Project Goals and Objectives_________________________________________________________________________________________4
1.3 Company Background______________________________________________________________________________________________4
1.4 Risk Identification_________________________________________________________________________________________________5
Section 2 – Risk Scope, Components, and Value_____________________________________________________________________5
2.1 Scope of the Risk Management Plan__________________________________________________________________________________5
2.2 Risk Management Plan Components__________________________________________________________________________________8
2.3 Expected Monetary Value___________________________________________________________________________________________9
2.4 Determine the Risks_______________________________________________________________________________________________11
2.5 Evaluate and Assess the Risks_______________________________________________________________________________________12
2.6 Qualitative and Quantitative Processes_______________________________________________________________________________13
Section 3 – Risk Analysis and Assessment________________________________________________________________________16
3.1 Major and Minor Risks____________________________________________________________________________________________16
3.2 Risk Probability__________________________________________________________________________________________________16
3.3 Risk Matrix Template______________________________________________________________________________________________16
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3.4 Risk Data Quality Strategy__________________________________________________________________________________________16
3.5 Risk Reviews_____________________________________________________________________________________________________17
Section 4 – Corrective Action and Monitoring_____________________________________________________________________17
4.1 Risk Tolerance___________________________________________________________________________________________________17
4.2 Risk Mitigation___________________________________________________________________________________________________17
4.3 Corrective Risk Management Strategy________________________________________________________________________________17
4.4 Corrective Action Plan_____________________________________________________________________________________________17
Section 5 – Postmortem Plan___________________________________________________________________________________18
5.1 Results_________________________________________________________________________________________________________18
5.2 Follow Up_______________________________________________________________________________________________________18
Section 6 – References________________________________________________________________________________________18
Pritchard, C. L., PMP, PMI-RMP, EVP. Risk Management. [Capella]. Retrieved
from https://capella.vitalsource.com/#/books/9780429798566/_____________________________________________________________18
Templates__________________________________________________________________________________________________20
Risk Matrix Legend Example___________________________________________________________________________________________20
Risk Matrix Example_________________________________________________________________________________________________20
Risk Monitoring and Control Example___________________________________________________________________________________21
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Section 1 – Introduction to the Plan
1.1 Benefits of Risk Management
According the Project Management Institute (PMI), Risk is one of the Nine (9) process areas that are considered. Sound Stratagems
for Risk Management is paramount for the project manager (PM) to be effective in determining those areas that will be pitfalls to the
project as well as those areas that will bring about opportunities and showcase the strength of the organization. By preparing a plan
that accounts for the unknown, the project team can build in reactivity to mitigate or ward off these events should the arise.
Additionally, this plan will allow the team to maintain separation from these issues if deemed necessary. Meeting the project
objectives requires that the project be planned, prepared and evaluated in such a manner that the results align with the strategic
goals of the project.
Risk management planning examines, identifies and lists risk factors that are both internal and external to the project thus, adding to
the success of the project. Provisions within the risk management plan (RMP) identify the plausibility of incident, the potential
consequences, and perceived mitigations. Risk events are usually classified as having a Low, Moderate or High impact on the team’s
performance within the budget or schedule. These events usually carry the following descriptors: (Pritchard, 2015)
Low probability and low impact equal low risk
High probability and high impact equal high risk
High probability and low impact equal low risk (to the project’s overall success)
Moderate risk is usually a mixed group of the above that is something more than Low but does not meet the criteria to be considered
High.
Identifying and implementing the use of the proper techniques and toolset increases the level of performance of the risk management
plan in the delivery of a project that meets the goals and objectives laid out by the stakeholders. There is a plethora of tools and
techniques that can be used to manage risk within the construction industry. When choosing the tools and techniques to be used the
team must ensure that they align with the project goals and objectives. Some of these tools are appropriate for all project phases.
The trick to risk management is the identification, analysis and reaction to risks within a single process most methods are not able to
do this. The simple use of checklist and brain dumping events will not allow for the risks and consequences to be properly identified
and prioritized. Using a decision tree does not identify the result of risk occurrence. SWOT and PERT also lack the ability to be a one
size fits all solution as well .By utilizing bits and pieces of all the approaches such as risk register, checklists, hazard assessments
and develop a group charette geared toward risk management allows for a more contemporary and progressive approach, This
charette fits the bill for planning, identification and analysis while giving the team the ability to respond to the risk. Charettes are a
great way to get opinions and buy in from all stakeholders, it also gives the greatest opportunity to identify and mitigate all risks. [Show Less]