Risk Management Process
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Table of Contents
DOCUMENT OVERVIEW
PURPOSE
SCOPE
DESCRIPTION
RISK MANAGEMENT FLOW
ROLES AND RESPONSIBILITIES
RISK TRACKING PROCESS
Identify Risks
Assess and Prioritize Risks
Determine Course of Action
Review and Monitor Risks
RISK MANAGEMENT LOG ENTRY DEFINITIONS
PROCESS ASSISTANCE, QUESTIONS, OR RECOMMENDATIONS
APPENDIX A: RISK MANAGEMENT LOG
Document Overview
Purpose
The purpose of this Risk Management Process document is:
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To provide a framework to track and monitor project risks throughout the project lifecycle
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Establish roles and responsibilities of all participants in the process
Scope
This process will be used by the entire project team. As such, this document defines the Risk Management process and flow for a project.
Description
A risk is any factor that may potentially interfere with a successful completion of a project by having a negative impact to scope, cost, quality, or timeline/ schedule. A risk is not an issue — an issue has already occurred; a risk is the possibility that an issue might occur. By recognizing project risks, or potential issues, the Project Manager, or designee can attempt to avoid them through proper actions.
Risk identification consists of determining risks that are likely to affect the project and documenting the characteristics of those risks. While it is impossible to identify all possible risks, anything likely to occur should be included in the analysis.
Risk identification is the responsibility of all members of the project team. The Project Manager is responsible for tracking risks and developing mitigation strategies/ contingency plans that address the risks identified by the team. Sometimes a risk identification “brainstorming” session can help in the initial identification process, mitigation strategies and contingency plans. Such meetings help team members understand various perspectives and can help the team better understand the “big picture.”
The activities below describe the process for identifying, analyzing, prioritizing and responding to risks during the project lifecycle. The entire project team will be trained on Risk Management and their active participation in identifying and mitigating risks will be encouraged. Risk monitoring will be managed by the project manager or designee and supported by all project team members.
Risk Management Flow
Roles and Responsibilities
The following table represents the roles and responsibilities associated with tracking risks on a project:
Responsibility
Project Leadership
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Analyze and assess risks identified
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Attend risk meetings as scheduled
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Participate in:
– Identifying, discussing, and clarifying new risks
– Re-evaluating and updating current risks
– Defining and modifying mitigation/contingency strategies for each risk
– Present project point of view in developing risk mitigation strategies
– Perform actions that reduce the exposure for a risk, focusing on probability, risk impact, or both
– Assess risk mitigation activities, program and effectiveness; help refine these as necessary
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Final validation of risk owners
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Serve as risk owner, as assigned
Project Manager or designee
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Facilitate the risk assessment processes of identification, assessment, mitigation
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Prompt risk owners as necessary for updates to assigned risks
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Manage and update the Risk Management Log
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Coordinate risk meetings
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Monitor overall status of project risks
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Escalate risks as appropriate
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Provide initial input to and assignment of risk owner as appropriate
Risk Owner
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Perform research required to clarify and analyze risks
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Develop mitigation strategies and contingency plans
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Monitor status of individual risk and report status to the Project Manager or designee
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Report any changes in the probability of occurrence and potential impact of each risk
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Execute mitigation strategies/tactics as part of the risk management process
Team Members
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Identify and report risks to Project Manager or designee
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Provide input into the risk analysis, risk mitigation/contingency plan development, as required
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Participate in mitigation/contingency activities, as required
Risk Tracking Process
IDENTIFY RISKS
Risk identification begins in the early planning phase of the project. A Risk Management Log is started during the planning phase. As scheduling, budgeting, and resource planning occur, the worksheet is updated to