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Project Management Process – Phase 2 – Planning – Create Risk Management Plan (#10 in the Hut Project Management Process)
By John Filicetti

Description

Project Risk Management includes the processes concerned with identifying, analyzing, and responding to project risk, maximizing the results of positive events and minimizing the consequences of adverse events. The Risk Management Plan will be created before and after you create the Project Schedule, as you will be looking at the tasks in the Project Schedule and other factors in the Project Management Plan for potential risk items.

To adequately analyze risk, you’ll need a detailed plan. So, the best time to perform an initial risk analysis is just prior to starting the project during the PM Planning Phase. Waiting to consider risk until the project is being implemented is like trying to build a car as the car is moving down the road. It just won’t work.

Also, don’t make the mistake of thinking that risk analysis is a one-time task. You’ll want to reevaluate the risk management plan and your risk analysis from time to time throughout the project and whenever major deviations from the plan occur.

Steps

There are four steps to assessing and managing risks, and effective risk management requires all four of them.

  1. Identify the risks
  2. Qualify the risks
    1. Assess each risk for impact to the project if it does occur
    2. Assess the likelihood of the risk occurrence
  3. Plan for risks by creating a watchlist of risk triggers and how to handle the risk if it does occur
  4. Monitor and manage risks

Templates

Owner of This Step

  • Project Manager

Next in the Hut Project Management Process:

Project Management Process – Phase 2 – Planning – Develop Project Management Plan

Previously in the Hut Project Management Process:

Project Management Process – Phase 2 – Planning – Develop Project Schedule

John F. Filicetti, PMP, MBA
John Filicetti is a Sr. Sales Engineer/PM-PMO-PPM Consultant with a great depth of experience and expertise in enterprise project management, project management methodologies, Project Portfolio Management (PPM), Project Management Offices (PMOs), Governance, process consulting, and business management. John has directed and managed project management teams, created and implemented methodologies and practices, provided project management consulting, created and directed PMOs, and created consulting and professional services in such areas as project portfolio management, Governance, business process re-engineering, network systems integration, application development, infrastructure, and complex environments. John has enjoyed many years as PMO Director for large corpoations in the Seattle area and leads the PMO Roundtable discussion group and forum.

John has attained a Bachelor’s degree in Industrial Education/Technology from Washington State University and an MBA from St. Mary’s College in Moraga, CA.

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