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Project Management

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Risk Management Principle
Risk management means the process of identifying risks that threaten the success of the project in terms of cost, completion date or realised benefits.  Risk management involves assessing their impact and probability and planning ways of mitigating or avoiding them.

The ultimate responsibility for risk management lies with the project manager, although in a large project the role may be delegated to a specialist risk manager.

Objectives

Ideally all of the threats to achievement of the project’s objectives should be anticipated and avoided or mitigated by early contingency planning and action

There should ideally be no issues (materialised risks) to manage, thus cutting out a traditional project overhead

The Process

Everybody involved in a project (i.e. the Board of Directors, the Sponsor, Project Manager, Quality Advisor, technical project staff, stakeholders) has a responsibility for identifying risks and reporting them to the Project Manager.

The risk log records when each risk is first identified and a score according to its probability and impact.  The Steering Committee should review the risk log at every meeting - concentrating on the high score risks.

Contingency plans should be devised only in proportion to the risk score.  If the probability and/or the impact is high then it may be worth having the contingency planned in some detail and provisionally resourced.
The steering committee and sponsor should be able to:
anticipate, avoid and mitigate threats to the achievement of project objectives
reduce costs arising from unexpected issues

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 Refer to -
Risk Log The Risk Log is a key document related to risk management
Contingency Planning Contingency Planning

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