Effective Project Risk Management Plan Guide

PROJECT RISK MANAGEMENT PLAN < CTI STRATEGIC PROJECTS > 1 of 22 1 | P a g e

Approvals Name Position Signature & Date Jonh D. Project Sponsor/Senior Responsible Officer/ Project Director Jonh D. Anna B. Senior User Anna B. Dada N. Senior Supplier Dada N. Distribution List Name Position Organisation David H. Project manager Building&renovate Nana K. Project reception Building&renovate Donna L. Design leadership Building&renovate Homa M. Financial leadership Building&renovate Revision History Date Version Modified By Changes Made, Review History 19/7/23 0.1 Project Manager Draf 19/7/23 0.2 Quality review 19/7/23 1.0 Project Board Approval at project Board meeting (loaded to CTI) Please delete any instructions in blue before submitting 2 of 22 2 | P a g e

Contents 1. Introduction ...................................................................................................................... 3 Purpose ................................................................................................................................. 4 Objectives ............................................................................................................................. 4 Scope .................................................................................................................................... 4 Responsibilities for this Plan ................................................................................................. 4 2. Risk Management Procedure ............................................................................................ 4 Identification ......................................................................................................................... 4 Analyse ................................................................................................................................. 5 Evaluate ................................................................................................................................ 5 Treat ...................................................................................................................................... 5 Communicate and consult .................................................................................................... 5 Monitor and review .............................................................................................................. 5 3. Tools and Techniques ........................................................................................................ 6 Risk register .......................................................................................................................... 6 Risk Matrix ............................................................................................................................ 6 Priority .................................................................................................................................. 7 Risk Categories ...................................................................................................................... 7 Risk Mitigation Categories .................................................................................................... 7 4. Records ............................................................................................................................. 7 5. Reporting .......................................................................................................................... 8 6. Roles and responsibilities .................................................................................................. 8 7. Risk Tolerance ................................................................................................................... 8 8. Risk funding ...................................................................................................................... 8 9. Timing of Risk Management Activities .............................................................................. 9 10. Appendix ......................................................................................................................... 10 Risk 1 identification form .................................................................................................... 10 Risk 2 identification form .................................................................................................... 13 Risk 3 identification form .................................................................................................... 17 3 of 22 3 | P a g e

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1. Introduction Purpose A risk management plan ensures that risks are managed properly. The goal is to reduce impact of negative risks and to increase the impact of opportunities. The risk management plan provides a tool for reporting risk to senior managements as well as the project sponsor and team. A Risk management plan details how the team will manage risk. It describes the level of risk that is tolerable for the organisation. It ensures that the level of risk management is commensurate with the identified risks and the organisation’s appetite for risk Objectives Add at least two (2) objectives for the project risk management plan 1. For protect and create project value by understanding. 2. For managing and communicating project threats and opportunities. Scope Add at least two (2) things in scope for the Risk Management Plan 1. Schedule 2. financial Add at least one (1) thing out of scope for the Risk Management Plan 1. Delay of delivery Responsibilities for this Plan List who is responsible for the plan 1. Project manager 2. Risk Management Procedure Identification Add at least two (2) tools to use for risk identification and explain how they work for the project 4 of 22 4 | P a g e

Tool Name Description SWOT Analysis This tool can be used to identify risks Risk register This can identify and describe the risk Analyse Discuss how this is done using the Risk Matrix (100 words) The Risk Matrix is the basis for measuring potential risks based on two intersecting factors (the likelihood and consequence). The Risk matrix is a visual depiction of the risks affecting a project to enable companies to develop a mitigation strategy. On the project the Risk Matrix can identify event outcomes that should be prioritized or grouped for further investigation, provide a good graphical portrayal of risks across a project/task, simplifies the risk management process and enable more detailed analysis to be focused on high-risk areas. The numerical values in the risk matrix provide a powerful way to depict the company’s exposure to risks and how much effort is needed to minimize them. They make the entire situation clear by making use of each division inside the matrix and give insights regarding the future approaches that need to be adopted. Evaluate The purpose of this step is to assist in decision making about which risks need treatment and priority for treatment implementation. Discuss how you would do it for your project. (Maximum 100 words) Project evaluation is a strategy used to determine the success and impact of projects. So we can use the project evaluate by - Create an evaluation plan - Identify the source of evaluation and get organized - Implement the project evaluation - Analyse the data - Develop a report for your team - Discuss next steps Treat Risk treatment options should be selected based on the outcome of the risk assessment, the expected cost for implementing and benefiting from these options. Discuss how you would do it for your project (Maximum 100 words) The risk treatment is the way in which respond to a risk. The process can do in the project: - Assess the risk 5 of 22 5 | P a g e

- Decide whether the risk level is acceptable - Implement a treatment option - Conduct a second assessment to confirm that the treatment has reduced the risk to expected level. A treatment that reduces the risk level may become a new control. Communicate and consult Discuss how you will manage the communication of the Risks during the project. What activities need to be undertaken with the stakeholders e.g., Risk kick off meeting, Project Board meetings etc. (Maximum 100 words) Actually, the communication of the risk in the project should take before, during and afer a project to ensure that stakeholder expectations and option are upheld. So, during the project can communication of the risk by take a regular meeting between team members. The risk kick off meeting is the activities need to be undertaken with the stakeholders Monitor and review Monitoring and review can be periodic or ad hoc and should be a planned part of the risk management process. Discuss how you will monitor and review risk management plan. Consider plan, actual and variance discussion. The monitoring and reviewing risk management plan involves collecting, analysing, and reporting data and information related to risks and risk mitigation actions. To do this, can use the monitoring and reviewing template to record, track and visualise risk and their status. 3. Tools and Techniques Risk register What should be included in a Risk register? List at least five (5) fields/columns and describe why they are used. Name Description 1. Risk identification Is the risk name, date and a subtitle of risk 2. Risk description A short, high-level overview of the risk and why the risk is a 6 of 22 6 | P a g e

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potential issue 3. Risk category There are a number of risk categories that help quickly identify the potential risk 4. Risk likelihood The likelihood of a risk can be documented with a simple selection of: Not likely, Likely and Very likely. 5. Risk analysis This helps to quickly identify the most important risks to tackle. Risk Matrix Priority While the impact of a risk will help determine priority, it is good to also include this entry on your log. Priority should take into account both the likelihood of the risk and the risk analysis. Both of these aspects will make it clear which risks are likely to have harmful consequences on the project. Based on the Risk Matrix provided, what are the four (4) priority ratings afer you have determined the Likelihood and Consequence. 1. Low 2. Moderate 3 High 4 Extreme Risk Categories List at least two (2) things in Project risk categories and describe what they are. 7 of 22 7 | P a g e

Name. Description 1. Scope This is where the project fails to deliver on what it said it would do, causing issues with meeting deadlines and budgeting targets. 2. Budget Budget risk emerges from an incorrect estimate of a budget allotted to a specific project or activity. Budget risk is also known as cost risk Risk Mitigation Categories Risk treatment options should be selected based on the outcome of the risk assessment, the expected cost for implementing and benefiting from these options. Identify and discuss at least three (3) options for Risk mitigation in your project 1. Risk transfer This involves transferring the risk allocation between different parties 2. Risk Acceptance This involves accepting a certain risk and the threats it has for an organization for a certain period of time 3. Risk Avoidance This is the strategy that an organization uses when the consequences of certain risks are too high for them to mitigate the risk 4. Records Risk management activities should be traceable. In the risk management process, records provide the foundation for improvement in methods and tool, as well as in the overall process. Discuss role of Risk register and how it will be used A project manager: Project managers are the first line of defence for your business against project risk. They are responsible for: - Assessing those risks - Identifying project-related risks - Preparing strategies to address the risk and getting buy-in for risk management activities as required - Carrying out the risk management activities within the project - Reporting on risk management - Closing down risks that have passed 5. Reporting Discuss when you will review and report on Risks for your project 8 of 22 8 | P a g e

The risk of project should make a review at least once a month or more frequently. The project manager should take a review the issue during daily day work and collect every day’s risk for make a report of the regular report of month. 6. Roles and responsibilities Discuss role of Project Manager, Business and in Project Risk management Role Responsibility Project Manager Set up project goal, Planning, monitoring and managing all resources of the project. Business Market conditions, market adoption and product usability. Project Board Ensure the project remains focused on the scope, set up for success, Authorizes the project to continue to the next stage and Approves changes, variations to scope and schedule. 7. Risk Tolerance Define risk tolerance and discuss how it impacts your project. The project tolerance is a crucial part of any risk management plan. Risk tolerance cannot be analysed at the beginning of a project and later ignored, because it is ever changing with numerous influential factors. 8. Risk funding Discuss role of Contingency in project risk management The funding’s role in the project risk management should include a contingency plan to cover risks to scope, time, cost and quality. 9. Timing of Risk Management Activities Discuss role of time management and scheduling in Risk management The timing of risk management is the section to define the schedule, for the risk management activities and the process for organising and planning how to divide time. 9 of 22 9 | P a g e

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10. Appendix Complete the following three Risk Identification forms for your project Risks. When complete add the information into your risk register. Risk 1 identification form PROJECT DETAILS Project Name: CTI STRATEGIC PROJECTS Project Manager: David H. RISK DETAILS Risk ID: R-2 Raised By: David H. Date Raised: 19/7/23 Risk Description: The project is very likely to run over time. 10 of 22 10 | P a g e

Risk Rating: based on the Risk matrix Add the risk rating Low, Moderate, High and Extreme based on the Likelihood and Consequence. Risk Rating might be:  Low  Moderate  High  Extreme Risk Likelihood: Describe and rate the likelihood of the risk eventuating (i.e. Almost certain, Likely, Possible, Unlikely or Rare) Risk likelihood might be :  Almost certain  Likely  Possible  Unlikely  Rare Risk Consequence: Describe and rate the impact on the project if the risk eventuates (i.e. Insignificant, Minor, Moderate, Major or Catastrophic) Risk consequence might be : 1 Insignificant 2 Minor 3.Moderate 3 Major 4 Catastrophic RISK MITIGATION 11 of 22 11 | P a g e

Recommended Mitigation Actions: Add a brief description of any actions that should be taken to prevent the risk from eventuating. Options • Accepting the risk • Avoiding the risk • Controlling the risk • Transferring the risk • Monitoring the risk Recommended Contingent Actions: Take a regular meeting. APPROVAL DETAILS© Supporting Documentation: Risk register 12 of 22 12 | P a g e

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Signature: David H. Date: _19__/_7__/_23___ PLEASE ADD TO RISK REGISTER 13 of 22 13 | P a g e

Risk 2 identification form PROJECT DETAILS Project Name: CTI STRATEGIC PROJECTS Project Manager: David H. RISK DETAILS Risk ID: R-3 Raised By: David H. Date Raised: 19/7/23 Risk Description: Quality may be reduced as time pressures impact workers 14 of 22 14 | P a g e

Risk Rating: based on the Risk matrix Add the risk rating Low, Moderate, High and Extreme based on the Likelihood and Consequence Risk Rating might be:  Low  Moderate  High  Extreme Risk Likelihood: Describe and rate the likelihood of the risk eventuating (i.e. Almost certain, Likely, Possible, Unlikely or Rare) Risk likelihood might be:  Almost certain  Likely  Possible  Unlikely  Rare Risk Consequence: Describe and rate the impact on the project if the risk eventuates (i.e. Insignificant, Minor, Moderate, Major or Catastrophic) Risk consequence might be: 1 Insignificant 2 Minor 3.Moderate 3 Major 4 Catastrophic RISK MITIGATION 15 of 22 15 | P a g e

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Recommended Mitigation Actions: Add a brief description of any actions that should be taken to prevent the risk from eventuating Options • Accepting the risk • Avoiding the risk • Controlling the risk • Transferring the risk • Monitoring the risk Recommended Contingent Actions: take a review once a week APPROVAL DETAILS© Supporting Documentation: Risk register 16 of 22 16 | P a g e

Signature: David H. Date: _19__/_7__/_23___ PLEASE ADD TO RISK REGISTER 17 of 22 17 | P a g e

Risk 3 identification form PROJECT DETAILS Project Name: CTI STRATEGIC PROJECTS Project Manager: David H. RISK DETAILS Risk ID: R-4 Raised By: David H. Date Raised: 19/7/23 Risk Description: The project may need to factor in an increase in WorkCover premiums next year 18 of 22 18 | P a g e

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Risk Rating: based on the Risk matrix Add the risk rating Low, Moderate, High and Extreme based on the Likelihood and Consequence. Risk Rating might be:  Low  Moderate  High  Extreme Risk Likelihood: Describe and rate the likelihood of the risk eventuating (i.e. Almost certain, Likely, Possible, Unlikely or Rare) Risk likelihood might be:  Almost certain  Likely  Possible  Unlikely  Rare Risk Consequence: Describe and rate the impact on the project if the risk eventuates (i.e. Insignificant, Minor, Moderate, Major or Catastrophic) Risk consequence might be: 1 Insignificant 2 Minor 3.Moderate 3 Major 4 Catastrophic RISK MITIGATION 19 of 22 19 | P a g e

Recommended Mitigation Actions: Add a brief description of any actions that should be taken to prevent the risk from eventuating Options • Accepting the risk • Avoiding the risk • Controlling the risk • Transferring the risk • Monitoring the risk Recommended Contingent Actions: Review the project issue and management plan, and take a meeting and consult with stakeholder. APPROVAL DETAILS© Supporting Documentation: Risk register 20 of 22 20 | P a g e

Signature: David H. Date: _19__/_7__/_23___ PLEASE ADD TO RISK REGISTER 21 of 22 21 | P a g e

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T62_Risk_Man_Plan (2)

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