A risk management action plan allows project managers to identify, analyse, plan and control potential risks, that are a threat to a project.

This plan allows for the reduction of failure and of negative impacts, but what makes a risk management effective?

  • If the risk management plan is specific, it will be effective. Which means identifying risks, analysing how these risks will affect a project, planning for these potential risks and monitoring these risks. Risks can be monitored by setting controls within the plan that deal with the potential risks.
  • Specific roles and responsibilities need to be included within the plan. These need to be assigned to the project managers, team members and stakeholders. Sometimes IT support may be needed, if so IT technicians will have to be identified too.
  • In order to ensure the risk management plan remains relevant, it needs to be reviewed from time-to-time.
  • Consider setting levels for each risk, from high to low to acceptable.

Measure risks by setting controls

By documenting the past risks you have overcome and how they were dealt with, it will enable you to set the following controls:

  • Identify and plan for risks
  • Document the risks
  • Identify the triggers of the risk
  • Review the risk
  • Re-analyse risks at certain periods
  • Determine responsibilities for each of the possible risks
  • Set risk strategies

We hope this allows you to develop an effective risk management plan but if you have any more questions or would like to hear more about risk management then do not hesitate to get in touch.