The use of a project risk management plan is designed to help a business or projects avoid unnecessary problems that can occur and impact them. The one fact of running a project or business that is a certainty is that there are risks out there and some will impact your organization. It is how well you deal with their impact that will determine if the impact is mitigated properly or devastating.
The creation of a project risk management plan is the task of the project manager. They are the ones that have the experience in running projects and how the different risks in the business world could adversely affect their organization. This is important since the listing of the risks in a plan is the first step in its creation.
The next step in the creating of a project risk management plan is the prioritizing of the indentified risks. This is done by comparing each risks impact potential on your project along with the damage it might inflict. These steps are made easier when a risk management template is used. They have the space predesigned for these categories that makes organizing this document easier and faster.
Once the prioritization of the list is done, comes the action portion of the project risk management plan. This is where the mitigation of the risks can actually be recorded so their effects can be felt. As all project manager s know, not every risk can have its impact totally mitigated in every instant. While it is possible, the nature of the risk will help to determine if it can be successfully accomplished.
The tracking of the impacting risks is another useful project management tool that should be a part of the project risk management plan. This allows the project manager to be aware of the damage and progress of any risk that has already impacted their project.
A well formulated project risk management plan is a useful tool for a project manager to have and utilize to help manage their project. Without one in place, forces outside your control will be heavily influencing the outcome of your project that you will not be able to control.