Section Summary – The Risk Management Plan

In the previous few chapters, we took a detailed look at the Risk Management Plan. Let us now quickly summarize what we have learnt so far about the RM Plan…

• The RM Plan is the heart and soul of Risk Management
• The purpose of the Risk Management Plan is to define how risks will be managed, monitored and controlled throughout the project
• The RM Plan is created during the Plan Risk Management process of the PMBOK guide.
• The following are the inputs used in creating the RM Plan:

o Project Scope Statement
o Cost Management Plan
o Schedule Management Plan
o Communications Management Plan
o Enterprise Environmental Factors &
o Organizational Process Assets

• The Risk Management Plan is created using a Planning Meeting
• The Planning meeting is critical to the project’s success because they create the foundation and the roadmap for all risk related activities in the project
• As per the PMBOK guide, the RM Plan contains 10 sections. They are:

o Risk Methodology
o Roles & Responsibilities
o Budgeting Information
o Timing Information
o Risk Categories
o Definition of Risk Probability & Impact
o The Probability & Impact Matrix
o Revised Stakeholder Risk Tolerances
o Reporting Formats and
o Risk Tracking Information

• Based on the guidelines defined in the RM Plan, risks are first identified and added to the risk Register. They are then prioritized during Qualitative risk Analysis and the risk register is further updated with the Risk Ratings which will help us decide which risks to concentrate on and which ones we can worry less about.

Prev: Contents of a RM Plan

Next: Overview of the Risk Register