The planning approach for risk management contains the elements that are necessary to properly prepare and set the ground rules that will allow us to manage the risk of the project. There are several inputs to the risk planning process. The overall project plan is a major input since it defines the stakeholders, size, complexity, and objectives of the project. It also defines the roles and responsibilities of the project team members, decision makers, customers, suppliers, and all of the others who may be involved in the project.
We also need to have an overall company strategy for managing risk. A company that is involved in products that put people's lives in danger will be much more concerned about dealing with these kinds of risk than a company where the risks involve small financial losses.
Templates may be used to assist in making up the risk management plan. This allows much time to be saved by using the already developed content of the plan. Many projects are similar in nature, and you will be able to borrow heavily from already completed or planned project risk management plans.
Much like the work breakdown structure that is the basis for so much of good project management, the Risk Breakdown Structure (RBS) can be considered in much the same way. Starting at the highest level we have the project risks. From there we have a hierarchical structure organized by risk causes. As we move down this structure the description of the risk causes and the risks themselves becomes more and more detailed. For example, a project's risks might first be divided into technical risks, business risks, project management risks, customer risks, and environmental risks. The RBS should continue until all of the detailed risks have been detailed enough that they can be acted on and have one and only one person responsible for them.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.