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1. Risk Management Plan
Purpose
Use this template to help you define how the risks associated with the project will be
identified, analyzed, and managed throughout the project’s lifecycle.
The Risk Management Plan is created by the project manager in the “Plan” stage of the
Project Management Methodology and is monitored and updated throughout the project.
The intended audience of this document is the project team, project sponsor, management
and other key stakeholders.
General Information
This document consists of the risk management plan for the following project:
Project Title Project Management Office (PMO)
Project Sponsor Jane Doe, Vice President
Jim Thompson, Director
Project Manager
(Email) jimthompson@abc-company.com; (Phone) +1 (555) 555-5555
Tim Smith
Bob Park
Project Team Members Jill Smith
Ted Donahue
Amanda Hunter
Project Start Date October 1, 2013
Project End Date November 1, 2014

2. Process
The Project Manager will serve as the Risk Manager for the project and will work with the
project team to ensure that risks are actively identified, analyzed, and managed throughout
the life of the project.
The diagram below outlines the process that the project manager will follow:
Identify, Score
Share Risks
and Rank
with the PMO
Project Risks
Communicate Add Risks to
Risks in the Project
Status Report Schedule
Identification
This section will describe when risks will be identified and how the project team will go
about identifying them.
Risk identification should include an evaluation of environmental factors, a review of the
organizational culture and a detailed audit of the project plan. Careful attention should
also be given to project deliverables, assumptions, constraints, WBS, cost/effort estimates,
resource plans, and other key project documents.

3. A few common ways of identifying risks include:
 Expert interviews
 Meetings
 Reviewing information from past projects
 Conducting a risk assessment
Scoring
All risks identified will be assessed to determine the range of possible outcomes. Use
Demand Metric’s Risk Assessment Tool to assess the consequence and likelihood of each
risk, and to develop risk mitigation plans.
This qualification will allow the project manager to identify which risks are the top risks to
pursue and respond to and which risks can be ignored. He/she can then prioritize the
organizations efforts by building risk avoidance and mitigation strategies for risks that have
a high probability of occurring and that will have a significant impact on the project.
The following is a breakdown of probability and impact:
Likelihood
 Almost Certain – Greater than 70% probability of occurrence
 Possible – Between 30% and 70%
 Unlikely – Below 30%
Consequence
 Catastrophic – Risk that has the potential to greatly impact cost, schedule or
performance
 Moderate – Risk that has the potential to slightly impact cost, schedule or
performance
 Insignificant – Risk that has relatively little impact

4. Mitigation
For each risk that will be mitigated, the project team will identify ways to prevent the risk
from occurring or reduce its impact or probability of occurring by selecting one or more of
the following approaches to address it:
 Avoid – eliminate the threat by eliminating the cause
 Mitigate – Identify ways to reduce the probability or the impact of the risk
 Accept – Nothing will be done
 Transfer – Make another party responsible for the risk
Monitoring
The level of risk will be continuously tracked, monitored and reported on by the Project
Manager in the project status report throughout the duration of the project. This includes,
but is not limited to, the identification of trigger conditions for each risk.
Any changes to the project will be analyzed for their possible impact using the Project
Change Request Form. The project sponsor, project team and key stakeholders will be
notified of important changes to risk status.
Risk Register
The project team will continue to use Demand Metric’s Risk Assessment Tool on an
ongoing basis to log risks, assess the impact and probability of each risk, and to develop
risk mitigation plans.
Based on the identified risks and timeframes, each risk should be added to the project plan
and an owner should be identified. The risk owner will be responsible for providing an
update on the status of their assigned risk at the bi-weekly project team meeting for their
risk’s planned timeframe.

5. Approval
Project Sponsor: Other Key Stakeholder:
Date: Date:
Name: Name:
Signature: Signature:
Executive: Project Manager:
Date: Date:
Name: Name:
Signature: Signature: