PMBOK® Guide-Based Project Risk Management Plan1

Project Name:

Department:

Project Manager:

Product/Process:

Document Owner(s) Project/Organization Role

Version Date Author Change Description

Project Risk Management Plan Purpose[Replace this text with your own statement of purpose, or use the following sample.]

The Project Risk Management Plan is a document that lays out the essential elements of risk planning for the Project.

The environment in which the project is operated The process by which risk will be identified, analyzed, prioritized, responded to,

and documented. The artifacts and tools to be used in risk management. The key stakeholders to the risk management process.

1 This template is based on the format recommended in the Project Management Institute’s Guide to the Project Management Body of Knowledge Fourth Edition (PMBOK® Guide).

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Project Risk Management PlanMethodology

Project Risk Management Plan Methodology[Replace this text with your own process, or use the following sample. Define the risk management methodology that will be used.]

This Project Risk Management Plan is created to accomplish the following goals:

Identify RisksIdentify Risks involves identifying and documenting risks that may affect one or more project deliverable.o Identify Riskso Identify Risk Breakdown Structure Itemso Describe Riskso List Each Risk’s Effects

Perform Qualitative Risk AnalysisPerform Qualitative Risk Analysis involves the intuitive review and description of the probability and impacts of the risks on the Risk List.o Define Rating Standard

Whether colors, adjectives, or numbers the terms must be defined consistently within a project.

o Describe Probability Assessment Methodologyo Describe Impact Assessment Methodologyo Describe the Prioritize Risk Methodology

Perform Quantitative Risk AnalysisPerform Quantitative Risk Analysis involves the numerical review and description of the probability and impacts of the risks on the Risk List.o Describe Data Gathering Activitieso Describe Evaluation and Analysis Activitieso Describe Risk Ranking Methodology

Plan Risk ResponsesPlan Risk Responses involves assessing the Prioritized Risk List, evaluating, and choosing the best response for the high-priority risks.o For Each High-Priority Ranked Risk Identify Alternative Responses

Monitor and Control RisksMonitor and Control Risks involves being an attentive Project Manager, noticing when risk indicators appear, handling the risk events that arise, documenting the response, and improving the Risk Plan.o Be Watchful for Indicatorso Execute Risk Plan When Risks Identifiedo Document Response Effectivenesso Reassess Risks Following Event

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Project Risk Management PlanStakeholder Roles And Responsibilities

Role Risk Management Responsibility

Assignment

[Project Manager] [The Project Manager is responsible for the Project Risk Management Plan being implemented and for reporting to the Project Sponsor and Management Group.]

[Name]

BudgetingDescribe the budgetary resources and funds that are needed for the risk management approaches taken in the project. Include information on contingency reserves if available.

TimingDescribe the periodicity of Risk Management activities in the project plan, whether it is based on chronology (weekly, monthly, quarterly) or is based on events (major landmarks in the project plan).

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Project Risk Management PlanRisk CategoriesDescribe the categories of Risk that have been defined for your organization or for the project in particular.

[Replace the generic categories below with categories specific to your industry, organization, and project]

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Project

Technical

Technology

Complexity

Performance

External

Regulatory

Market

Natural forces

Organizational

Dependencies

Funding

ResourcesPM

Project Risk Management PlanDefinitions of Risk Probability and ImpactDescribe the definitions of levels of Risk Probability and Impact that are used in the organization or in the project.

Defined Conditions for Impact Scales of a Risk on Major Project Objectives

Project Objective

Relative or numerical scales are shown

Low<.33

Medium.33-.75

High>.75

CostSmall cost increase

<5%Medium Cost Increase

5%-15%High Cost Increase

>15%

Time

Small Schedule increase

<5%

Medium Schedule Increase5%-15%

High Schedule Increase>15%

ScopeMinor Change in

ScopeMajor Change in

Scope

Change in Scope that makes Project unacceptable

QualityMinor Quality Degradation

Major Quality Degradation

Unacceptable Quality Degradation

Risk Probability and Impact MatrixDescribe your organization’s preferences for the ranking of risks based upon their probability and impact upon the Project’s objectives.

ImpactLow Medium High

Probability

Low

Medium

High

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Project Risk Management PlanStakeholders Risk Tolerances / Revised Risk TolerancesDocument the organizational bias or preferences within the organization for risk. If changes are made in the risk tolerances, document the method by which that was communicated to the project and date.

Stakeholder Risk Tolerance DateSafety is considered the number one priority of our organization. No risk that has the possibility of affecting personnel safety will be tolerated.

Any risk affecting cost will be more highly prioritized than anything but safety.

Reporting FormatsDescription of the methodology by which Risks are documented in the risk register and documented in the Risk Response Matrix.

Report Description

TrackingDescribe how Risk Management Activities will be tracked in the project and where they are filed in the organization

AssumptionsAssumption Impacted Risk / WBS

List Assumptions that have a bearing on Project Risk

List the Risk that is impacted by this assumption and the WBS number of the Project Tasks impacted by the Risk

Risk Management Plan Audit LogRecord Name Responsibility Approval

AuthorityDistribution

[Risk List] [Risk Manager] [Project Sponsor] [Intranet team site]

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Project Risk Management Plan

PROJECT RISK MANAGEMENT PLAN APPROVALS

Prepared By __________________________________

([Job Title])

Approved By __________________________________

([Job Title])

__________________________________

([Job Title])

__________________________________

([Job Title])

Approval Date__________________________________

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