The Project Management Institute (2017), in section 11.1.3.1, defines the Risk Management Plan as containing some or all of the following elements:
Risk strategy
Methodology
Roles and responsibilities
Funding
Timing
Risk categories
This is outlined in both A Guide to the Project Management Body of Knowledge and the Practice Standard for Project Risk Management.
Instructions
For the Portfolio Project that is due in Week 8, you will develop a complete Risk Management Plan and Risk Register for a project.
Select a project within your industry, or within an industry in which you would choose to work as a project manager. Submit an executive summary of your selection (high-level project charter) for a grade. You will also begin to outline a Risk Management Plan for this project and add to it each week. This will be submitted as part of your Portfolio Project in Module 8.
Construction Project Manager
Struggling with where to start this assignment? Follow this guide to tackle your assignment easily!
Step 1: Understand the Assignment Requirements
This assignment asks you to develop a Risk Management Plan and Risk Register for a project, to be submitted as part of your Portfolio Project in Week 8. First, you need to submit an executive summary of your selected project, which serves as a high-level project charter. Over the course of the next few weeks, you will build out the Risk Management Plan, starting with an outline.
As a Construction Project Manager, your project will likely be within the construction industry, but feel free to select a different industry if that’s your preference.
Step 2: Select Your Project
- Choose a Project: Begin by selecting a project that you would be managing. If you are a construction project manager, you may choose a construction project such as building a residential complex, a commercial building, or renovating a historical site. If you’re focusing on another industry, you could choose a technology implementation project, a marketing campaign, or a product development project.
- Create a High-Level Charter: In your executive summary, provide a high-level description of the project. This includes the project’s goal, purpose, stakeholders, timeline, and key deliverables. Think of this as an introduction to the project.
Step 3: Outline Your Risk Management Plan
Based on the Project Management Institute (PMI) guidelines, your Risk Management Plan should include the following elements:
- Risk Strategy:
- Define the overall approach to managing risks for the project. Will you focus on risk avoidance, mitigation, or acceptance? This strategy should align with your project’s objectives and the risk appetite of stakeholders.
- Example: For a construction project, you may prioritize risk mitigation strategies for safety and compliance.
- Methodology:
- Detail the approach or process you will use to identify, assess, and manage risks. You might use tools like SWOT analysis, risk assessments, or risk matrices.
- Example: You can use qualitative risk assessment methods to identify risks in the early stages and quantitative methods later in the project for more complex risks.
- Roles and Responsibilities:
- Define who will be responsible for managing risks in your project. Who is the Risk Manager? Who will oversee risk responses and actions? Include any teams or individuals responsible for risk identification, monitoring, and reporting.
- Example: As the project manager, you may assign certain team members to manage specific types of risks, like safety concerns or regulatory compliance.
- Funding:
- Discuss how risks will be funded. How will you allocate budget for risk management? Will you have a contingency fund to cover unforeseen risks?
- Example: Set aside 10% of the project’s total budget for risk management and emergency response.
- Timing:
- How will you track and manage the timing of risks throughout the project lifecycle? When will risk assessments occur, and how often will you revisit and update the risk management plan?
- Example: Plan for a risk review meeting every month and update the Risk Register accordingly.
- Risk Categories:
- Define the categories of risks that are most relevant to your project. Common categories include technical, financial, legal, environmental, safety, or schedule risks.
- Example: For a construction project, you might focus on safety risks, supply chain delays, labor shortages, and regulatory changes.
Step 4: Develop the Risk Register
The Risk Register is a living document that will be built upon each week. Initially, you’ll create a template with these columns:
- Risk ID
- Description of Risk
- Category of Risk
- Impact (High, Medium, Low)
- Likelihood (High, Medium, Low)
- Risk Response Strategy
- Owner
- Status
Each week, you’ll update this register as you identify new risks and develop strategies to address them.
Step 5: Review and Finalize Your Executive Summary
Your executive summary (high-level project charter) should cover:
- Project Overview: Briefly describe the project’s purpose, objectives, stakeholders, and high-level timeline.
- Risk Management Introduction: Introduce the concept of risk management for this project, including why it’s essential.
- Next Steps: Mention that the Risk Management Plan will be developed and added to in subsequent weeks.
Step 6: Submit the Executive Summary for Grading
Ensure your executive summary is clear, concise, and professionally written. It should outline the project you’ve chosen and include the foundational elements for your Risk Management Plan. Once you’ve reviewed it, submit it as your first deliverable.
Step 7: Plan for Future Risk Management Work
After submitting your executive summary, continue building your Risk Management Plan throughout the coming weeks. Stay on track with developing and refining the details of the plan, ensuring you add new risks, responses, and updates to the Risk Register as you progress.
By following these steps, you will lay the foundation for a solid, comprehensive Risk Management Plan and Risk Register. Good luck with your project!