Risk Management

Topics: Risk management, Project management, Risk assessment Pages: 23 (3834 words) Published: May 30, 2014

Risk Management Plan for the
Pasadena Foursquare Church Kitchen Renovation Project

1.1 Purpose of Risk Management
1.1.1 Knowing and Controlling Risks to Project Assets
The process of Risk Management instituted tothe Project with knowledge and control over the risk position of the project. Not all identified risks can be removed. The likelihood of surpassing requirements can be traded off against the risk of surpassing the budget constraints. Risk Management is a process used to balance the project risk position across all project resource areas, controlling the distribution and magnitude of the identified risks against the cost constraints while obtaining the best possible confidence in achieving high project performance return. 1.2 Risk Management is a Project Team Effort

1.2.1 Integral Part of Project Implementation
It is intended that Risk Management be an essential element in the Project Manager's tool kit. This involves considering risk at the very beginning of the project conceptualization. The key features of risk management (RM) activity within the project are: 1.Managed risks are essential elements of the project management control process 2.Cognizant personnel accept the time imposed to develop and maintain the risk list 3.Project Management Team plans the effort and the Project Manager takes ownership of the plan 4.Risk status reports are integral to the project review process 5.Effective metrics are identified and delivered per the plan to all stakeholders These activities require require commitment from the project manager, and the Risk Representative. 1.2.2 A Team Effort

Risk Management is a team effort. The project Risk Representative is the coordinator of the risk management activity. All members of the project team have important roles in identifying, assessing, and tracking risk, and in identifying the possible approaches to dealing with risks that are necessary for the project to make good risk decisions. Risk decisions are supported by analyses and recommendations from the project team, but are ultimately made by the Project Manager in the same manner as all cost, schedule and performance impact decisions are made. 1.2.3 Integrated Risk View

The Risk List developed and managed through the RM Process is a composite of the risks being managed by all elements of the project. It includes in one place the management view for risks from independent assessments, reviews, QA inspections, principles and policy, risk reviews, and residual risks from all project actions. Only in this way can it be managed as a comprehensive assessment of the liens on all project resource reserves, which allows optimized decisions to use these reserves to mitigate risks. 2. OBJECTIVES

2.1 Objectives of Risk Management
The overall objective of Risk Management is to identify and assess the risks to achieving project success, and to balance the mitigation of these risks (and hence the additional cost) against the acceptance and control of these risks (and hence a possible higher degree of project performance objectives). To further these objectives, the Project Management process involves identifying risks to the success the project, understanding the nature of these risks, individually and in total, and acting to control their impact on the success of the project. 3. RISK MANAGEMENT OVERVIEW

3.1 Definitions
Risk is defined as:
The combination of the likelihood of occurrence of an undesirable event and the consequence of the occurrence. This combination results in a risk severity, which is:
A measure of the risk magnitude. The higher risks dictate greater attention and urgency for action to mitigate. Risk severity is also influenced by the urgency of applying effective mitigations. Primary Risk is:

A risk which rates high on the severity scale – generally high levels of likelihood and consequence A specific risk to a project, identified in...
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