Purpose: The Risk Management Plan is a component of the Project Management Plan. It describes the approach for managing uncertainty, both threats and opportunities, for the project.
Methods and Approaches:
Describe the methodology or approach to risk management, Provide information on how each of the risk management processes will be carried out, including whether quantitative risk analysis will be performed and under what circumstances .
Tools and Techniques:
Describe the tools, such as a risk breakdown structure, and techniques, such as interviewing, Delphi technique, and so on that will be used for each process.
Roles and Responsibilities:
Define the role needed for risk management activities.
Describe the responsibilities associated with the risk management role.
Identify any categorization groups used to sort and organize risks. These can be used to sort risks on the risk register or for a risk breakdown structure, if one is used.
Stakeholder Risk Tolerance:
Describe the risk tolerance levels of the organization(s) and key stakeholders on the project.
Definitions of Probability:
List terms used to measure probability, such as High, Medium, and Low. Description:
Describe the ways of measuring probability and the difference between High, Medium, and Low. If using a numeric scale, identify the spread.
Likelihood that the event will occur:
Low [ 0 - 50% likelihood of occurrence ]
Medium [ 51% to 75% likelihood of occurrence ]
High [ > 76% likelihood of occurrence ]
Impact if the event occurs:
Low [ Less than 10% of the project budget ]
Medium [ Between 10% - 25% of the project budget ]
High [ More than 25% of the project budget ]
Sample Definitions of Probability
Definitions of Impact by Objective:
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