Project Risk Management

(Project Name)




Student Name
Date

Table of Contents
Project Risk Management Approach 1
Project Risk Management Process 1
Project Risk Identification 1
Project Risk Assessment (Qualitative) 1
Project Risk Assessment (Quantitative) 2
Project Risk Response 2
Risk Monitoring and Control 2
Risk Register 3



Project Risk Management Approach
Project risk management planning involves deciding how risk management activities will be conducted over the life of a project. The output of project risk management planning is the project risk management plan. Risk management is an iterative process. The risk management plan should be updated when any substantial changes to the project are made and/or when a risk event occurs.
Describe the purpose of the project risk management plan.

Explain how risk management will be approached for the project.

Project Risk Management Process
The contents of a Risk Management Plan can be found in the PMBOK (PMBOK® Guide), in section 11.1.3.1.

Project Risk Identification
Once the approach and process for managing project risks have been determined, it is time to identify potential project risks and document them in a risk register. It is helpful to think about possible sources or categories of project risks as a way to organize the risk list. It may not be possible to identify every risk that could occur during the project, but risk management is an iterative process. Over the life of the project you will review risks often, and you will update the risk register as needed.

Describe the process you will use to identify risks. Who will you include? When will you conduct these activities? How will you document the results?

Describe the types of risks you will define, such as operational, technical, regulatory, etc.

Describe the source of project risks that you plan to use, such as weather, vendor, staffing, technology, etc.

Document project risks in the risk register in Columns A–F.

Project Risk Assessment (Qualitative)
Once project risks have been identified, the project team must analyze them to try to determine the likelihood (probability) of occurrence and the effect to the project (impact) should a given risk event occur. All risk analysis begins with qualitative analysis. To ensure accuracy and completeness, the project team should study both the risk event itself and the interactions between risk events.
Explain how risk measurement scales will be developed. Will you use a standard organizational set of measurements or define your own?

Explain how risks will be prioritized based on the defined qualitative measurement scales.

Document risk measurement scales and their meaning in the project risk register in Columns H–J. For example:

What does a “2” mean for probability? Is that 20% or 20–40%?

What does a “4” mean for impact? Is that “project fails to meet one objective” or “project exceeds budget or timeline by 20%”?

Project Risk Assessment (Quantitative)
Once project risks have been qualitatively assessed, the project team must review those with the highest risk factor scores (probability x impact) and further analyze them using quantitative risk analysis methods.

For this project, use expected monetary value (EMV) as your quantitative method.

Explain how risks will be prioritized based on the EMV method.

Document the EMV risk measurement information in the project risk register in Column K.

Project Risk Response
Document risk response strategies (plans) for each risk in the project risk register in Columns L–M. The risk response strategies should be derived from the ten strategies in the PMBOK (PMBOK® Guide) in sections 11.5.2.4 and 11.5.2.5.

Risk Monitoring and Control
Risk monitoring and control is about ensuring that you are responding to risks as planned, identifying and planning responses to newly identified risks, and reviewing and updating all contingency reserves (time and money). Your risk management plan should include the steps, processes, or procedures that you will use to continually monitor and update the risk register throughout the life of the project.

Describe the method(s) you will use to monitor if risks are being triggered.

Describe the method(s) you will use to identify and plan responses to newly identified risks.

Describe the method(s) you will use to review and update any contingency reserves.

Describe the timing on all of the above. For example, some you may do daily, others weekly, others monthly. Perhaps these tasks will be done as part of your regular status meetings or at special meetings to discuss risk.


Risk Register

Note: The first line is an example. Delete it when creating your own risk register.


A B C D E F G H I J K L M  
Risk No. Risk Name Risk Event Description Risk Impact Description Risk Type Risk Source Risk Trigger Impact Score
1 to 5 Prob. Score
1 to 5 Risk Factor
P*I EMV* Response Type
Response  
X Rain Rain on the day of the picnic reduces the number of attendees resulting in a less festive event, reduced employee morale, and costs that can’t be reimbursed. Other Weather Chance of rain ≥30% forecasted seven days prior to picnic. 4 2 8 $20,000 Mitigate Set up enough large tents to house all scheduled attendees. In addition to outdoor activities, plan indoor events or activities in tents. Encourage everyone to come rain or shine.  
1  
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4  
5  
6  
7  
8  
9  
10



*EMV = probability of risk event * cost/impact if it does occur. Example: If it rains and we do nothing, people will not show up and we will lose the $100,000 that is due to caterers, event planners, etc. With a 20% chance of it raining, the EMV can be calculated as follows: $100,000 * 20% = $20,000. If we can mitigate the impact for less than $20,000 by implementing the response plan, it may be considered a good investment to do so.