Enterprise Project Management Office

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Enterprise Project Management Office

State of North Dakota

Risk Management Plan
Project Name: Agency: Project X

Agency ABC LMN Division

Business Unit/Program Area: Project Sponsor: Project Manager: Date: 08/21/08 Nancy W Joe P

Version:

1.5

Risk Management 1.
1.1.

INTRODUCTION
Purpose and Objectives
Risk Management is the systematic process of identifying, analyzing, and responding to project risks. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events to project objectives. A risk management plan defines how a project team will handle risks to achieve that goal.

2.

RISK-RELATED DEFINITIONS
There are a number of terms used in risk management that need we need to define to ensure clear communications.

2.1.

Risk
An uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives. Risk is often a measure of the inability to achieve overall project objectives within defined project requirements and constraints and has three components: (1) the probability of occurrence, (2) the impact of the risk on the program, and (3) the time horizon during which the consequences will occur if the risk is not mitigated.

Page 1 of 12

Enterprise Project Management Office

State of North Dakota

Sample Risk Management Plan
2.2. Probability of Occurrence
The following table defines the probability of occurrence.
Table 1 – Risk Probability of Occurrence

Probability range 91% through 99% 61% through 90% 41% through 60% 11% through 40% 1% through 10%

Natural language expression “Very likely” to occur “Probably” will occur “May occur” about half of the time “Unlikely” to occur “Very unlikely” to occur

Probability value used for calculations 95% 76% 51% 26% 5%

Numeric score 5 4 3 2 1

2.3.

Risk Impact
The following table defines the risk impact categories and terms. For positive risks,...
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