How to Create a Risk Management Plan

Risk Management is a big topic. But at its core is your risk management plan... How will you deal with a particular risk?
Eight Steps to Create a Risk Management Plan
1. Clarify what the risk is
Characterize it, describe it, evaluate it, for:
1. Impact
2. Likelihood
3. Proximity (time)
2. Understand root causes
3. Split it into smaller risks if possible
For each…
4. Determine how you will respond, strategically
You can choose one or more from:
1. Eliminate
2. Reduce likelihood
3. Reduce impact
4. Transfer
5. Create a contingency plan
6. Accept (and do nothing more)
5. For each strategy, determine the tactics and approaches you can take.
Evaluate them and document the best
6. Write up your action plan.
Include:
1. What you will do
2. Timing (schedule)
3. Who will be responsible
4. Resources they will need (people, assets, and materials)
5. Budget
6. Review points
7. Determine residual risk
If you follow your action plan, what, if any, risk remains?
8. Document further contingency plans,
…if needed, to handle the realization of this residual risk.
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[@Onlinepmcourses]

Risk Management is, perhaps, the single most important project control. And, at its root, is the creation of a plan to manage a risk. In this video, I describe how to create one, and what goes into it.
Thank you for watching - please do subscribe to the channel and, to join my community, sign-up at onlinepmcourses.com/assets440251/the-onlinepmcourses-newsletter/

[@InfluentialPMO]

Great video Mike! The whole process is well described, but for me the hidden gem here is the tip about splitting big risks into small ones. I offered similar advice to a colleague recently whose original risk involved a possible delay to the project, only to see 3-4 clearer risks emerging where that could manifest. His approach had been to just add each of them to the mitigation plan, but as he didn't want that to get too big he kept his plans vague which was unhelpful. Splitting the risk into (eventually) 5 risks proved a lot easier to manage and demonstrate control. So yes, good tip Mike, and excellent video!

[@Onlinepmcourses]

Thank you Stuart. I recommend a Fishbone Analysis (Ishikawa Diagram) for analysing one big, amorphous, compound risk into multiple small, manageable risks.

[@Mr21Pat]

Great knowledge share as usual Mike, breaking it down to chunks makes it easier to handle.

[@Onlinepmcourses]

Thank you, Patrick.

[@magnet9661]

These may not be very popular but I'm enjoying all your content, wisdom isn't knowledge.

[@Onlinepmcourses]

Thank you.
Commenting, Liking, and Subscribing all help get the word out!

[@financialplanningaustra2719]

Thanks for explaining how we can create "Risk Management Plan" :)

[@Onlinepmcourses]

My pleasure.

[@sra831badmin]

The biggest risk is not taking one. 😀

[@Onlinepmcourses]

Sometimes that's true!

[@TeW33zy]

Why does everyone make videos running they mouth but not 1 person says let's right one together. It's easy like they say but not 1 can do it.

[@Onlinepmcourses]

What?

[@TeW33zy]

@@Onlinepmcourses Instead of explaining why not just show them how to write one?

[@Onlinepmcourses]

@@TeW33zy Because a worked example would be contextual and the style of my videos is to proved basic information for a broad audience. But, I shall consider the idea, thank you.