Its important to spend time developing the risk management plan because its an input to every other riskplanning process and enhances the probability of risk management success

You'll take a look at most of these elements next. However, risk categories, probability and impact, and probability and impact matrix are pretty meaty topics, so I'll cover those in their own sections following this one.

Methodology Methodology is a description of how you'll perform risk management, including elements such as methods, tools, and where you might find risk data that you can use in the later processes.

Roles and responsibilities Roles and responsibilities describe the people who are responsible for managing the identified risks and their responses and for each type of activity identified in the risk management plan. These risk teams might not be the same as the project team. Risk analysis should be unbiased, which might not be possible when project team members are involved.

Budgeting The budget for risk management is included in the plan as well. In this section, you'll assign resources and estimate the costs of risk management and its methods. These costs are then included in the project cost baseline.

Timing Timing documents the timing of the risk management processes (including when and how often they'll be performed on the project) and includes the activities associated with risk management in the project schedule.

Revised stakeholder tolerances This is just as it implies. As you proceed through the risk management processes, you might find that risk tolerances will change. Document those new tolerance levels in the risk management plan.

Reporting formats Reporting formats describe the content of the risk register and the format of this document. (I'll talk more about the risk register later in this chapter.) Reporting formats also detail how risk management information will be maintained, updated, analyzed, and reported to project participants.

Tracking This includes a description of how you'll document the history of the risk activities for the current project and how the risk processes will be audited. You can reference this information when you're performing risk-planning processes later in the current project or on future projects. This information is also helpful for lessons learned, which I'll cover in Chapter 11, "Controlling Work Results."

Project Management Made Easy

Project Management Made Easy

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.

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