Running head: RISK MANAGEMENT PLAN 1 RISK MANAGEMENT PLAN 2 Risk Management Plan Name Institution SCOPE This risk management plan illustrates how risk management will be organized and carried out on the project to make sure risks are dealt with and controlled at acceptable levels. Risks in this project can be cannot be totally eradicated (Assessment, 2016). Tasks Costs ($) Starting date (2017) End date (2017) Risk identification 10,000 August/ 1 August/31 Risk assessment 15000 September/1 September/30 Risk register 5000 October/1 October/ 30 Risk analysis 20000 November/1 November/14 Risk response planning 5000 November/15 November/30 Mitigation actions to consider 5000 December/ 1 December/14 Risk related to time, cost or scope 5000 December/ 15 December/ 31 Risk monitoring control 25000 January/1/018 January/14/ 018 Total 90000 January/ 15/018 January/31 Deliverables · Risk Identification · Analyzing the underlying causes of a risk · Assign a probability of occurrence to every lowest level causes, and calculate the possibility of every next higher risk by continuing up the tree until the highest probability is calculated.   · Identify the possible loss · Enter the Prob(UO) and Loss(UO) values on the Risk Log. · Sort the spreadsheet by descending order of Risk Exposure. Risk mitigation OBJECTIVES · To minimize the effect of unplanned incidents on the project by identifying as well as addressing possible risks before substantial negative results occur. · The risk assessment is to become a subset of the Project Management Plan. · To identify all activities based on the following five procedures to make sure they suit the functions in question PROJECT SIZE · Risk Reviews and Reporting  · Probability and Impacts of the Risk Management Plan · The size of the project team 11 people · The project will elapse after 6 months · Variation in the timeframe to be tolerated-schedule is flexible · Problem is easily understood and solution is readily attainable · Total cost of the project less than $100,000 · Level of change to be implemented-impacts many business units RISK TOOLS AND TECHNIQUES Qualitative Risk Analysis After possible risks have been detected and developed, the next phase is to assess them. This can be quite challenging if there are many risks (Assessment, 2016). Hence the first step is to filter the risks in order to determine which are the potential risks and which are important. Qualitative risk techniques include the following: The green-light or red-light rating is a subjective evaluation of whether risk will have key impact on the project. The risks are then divided into 3 groups, one is “green”, one is “yellow’ and finally one is “red.” The threshold for these classes can be predicated on the possibility of occurrence, the quality of impact, the time impact, the cost impact or the mixture of these (Assessment, 2016). Usually, red risks are the ones that are likely to happen ...

1. Running head: RISK MANAGEMENT PLAN
1
RISK MANAGEMENT PLAN 2
Risk Management Plan
Name
Institution
SCOPE

2. This risk management plan illustrates how risk management will
be organized and carried out on the project to make sure risks
are dealt with and controlled at acceptable levels. Risks in this
project can be cannot be totally eradicated (Assessment, 2016).
Tasks
Costs ($)
Starting date
(2017)
End date
(2017)
Risk identification
10,000
August/ 1
August/31
Risk assessment
15000
September/1
September/30
Risk register
5000
October/1
October/ 30
Risk analysis
20000
November/1
November/14
Risk response planning
5000
November/15
November/30
Mitigation actions to consider
5000
December/ 1
December/14
Risk related to time, cost or scope

3. 5000
December/ 15
December/ 31
Risk monitoring control
25000
January/1/018
January/14/ 018
Total
90000
January/ 15/018
January/31
Deliverables
· Risk Identification
· Analyzing the underlying causes of a risk
· Assign a probability of occurrence to every lowest level
causes, and calculate the possibility of every next higher risk by
continuing up the tree until the highest probability is
calculated.
· Identify the possible loss
· Enter the Prob(UO) and Loss(UO) values on the Risk Log.
· Sort the spreadsheet by descending order of Risk Exposure.
Risk mitigation
OBJECTIVES
· To minimize the effect of unplanned incidents on the project
by identifying as well as addressing possible risks before
substantial negative results occur.
· The risk assessment is to become a subset of the Project
Management Plan.
· To identify all activities based on the following five
procedures to make sure they suit the functions in question
PROJECT SIZE
· Risk Reviews and Reporting
· Probability and Impacts of the Risk Management Plan
· The size of the project team 11 people
· The project will elapse after 6 months
· Variation in the timeframe to be tolerated-schedule is flexible

4. · Problem is easily understood and solution is readily attainable
· Total cost of the project less than $100,000
· Level of change to be implemented-impacts many business
units
RISK TOOLS AND TECHNIQUES
Qualitative Risk Analysis
After possible risks have been detected and developed, the next
phase is to assess them. This can be quite challenging if there
are many risks (Assessment, 2016). Hence the first step is to
filter the risks in order to determine which are the potential
risks and which are important.
Qualitative risk techniques include the following:
The green-light or red-light rating is a subjective evaluation of
whether risk will have key impact on the project. The risks are
then divided into 3 groups, one is “green”, one is “yellow’ and
finally one is “red.” The threshold for these classes can be
predicated on the possibility of occurrence, the quality of
impact, the time impact, the cost impact or the mixture of these
(Assessment, 2016). Usually, red risks are the ones that are
likely to happen and will substantially impact one of the
objectives of the project. These risks should be addressed,
normally with immediate change to the plan of the project. The
green risks are the ones that either are trivial or they are risks
that at some point were yellow or red and have been alleviated
(Broekx, Smets, Liekens, Bulckaen & De Nocker, 2011).
The next technique for qualitative risk is risk matrix. This can
be set up as a 5x5, a 4x4, a 3x3, a 2x2, however the size of this
project is 3x3. The vertical side of the matrix is denoted
possibility, while the horizontal side is project impact (Cloete,
2009). The scale on the matrix goes from low to high on every
side. How high or low are described are based on major
objectives of the project. After the matrix has been created,
each risk identified is placed on a post-note then locate the risk
in the proper spot on matrix based on the possibility of that risk
occurring on this project objective if it occurs (Cloete, 2009).
The risks in the upper right corner are the main risks that must

5. be addressed in project planning. The risks in the lower left
corner are minor risks which can be ignored.
The final technique is an urgency assessment. This analyses if
the project risk should be managed. Some risks don’t have the
possibility of occurring till late in the project and vice versa.
The urgency assessment helps to identify anything that is an
immediate issue for the project team and which risk issues are
not yet in play (Broekx, et al.,2011).
Quantitative Risk Analysis
Quantitative risk techniques attempts to measure the impact of
the project. These techniques are usually much more
multifaceted as compared to the qualitative techniques and thus
need much more effort and time to complete. Quantitative
analysis will give me guidance such that when I meet with
stakeholders we can concentrate on our argument around the
business impact of doing nil than doing something (Stephenson,
2001). The techniques are as follows:
Sensitivity Analysis - the project plan is established without
considering the risk factor taking place and then the risk factor
is presented and the plan is recreated with the impact of risk in
place. This offers a demo to the participants of why the risk is
significant and requires to be addressed.
Failure Mode Impact Analysis - this technique is exceptional for
addressing quality or technical risks. It isn’t very operational
for addressing schedule or cost risks. Though, because the risk
is measured based on security and safety issues, it can be
valuable for explaining the reason a change in project
necessities is needed (Stephenson, 2001).
Decision Tree with Anticipated Financial Value - this technique
can demand a substantial amount of time to create, however,
once created it can effortlessly be reprocessed as project
expectations start shifting and the project is enforced to respond
to the changing situations (Stephenson, 2001). The decision tree

6. indicates the effect of decisions as well as risk events on project
actions and the expected monetary value measures those effects.
RISK REVIEWS AND REPORTING
Continuous controlling and reviews of the project risks helps to
ensure that the risk response plan and the risk treatment action
strategy are executed and progressed efficiently. This risk
review included regular agenda of the project management
meetings and used at many milestones and phases of the project.
This risk review will help to facilitate proper change and
continuous improvement. The procedure of reviewing and
reporting include risk audits and reserve analysis. The risk
watch list will review the criteria to review performance of
work data, comprising deliverables status, expenses incurred as
well as project schedule progress.
Communicating with project shareholders by means of risk
reports is a critical driving force that helps to undertake suitable
risk management and attain project results according to
anticipations. Risk reporting assist the project manager, owner
of the project, as well as customer to understand prevailing
opportunities, risks as well as trade-offs (Cloete, 2009). The
purpose of risk reporting is to make sure all parties are
knowledgeable of prevailing risks evading disagreeable
astonishments and illegal actions. The project manager as well
as the project team and the risk owner will create reports and
connect with the stakeholders to maintain the constancy of
fundamental assumptions and risk management actions (Cloete,
2009).
PROBABILITY AND IMPACTS
The probability assigned on the project is 0.25. This is due to
the following impacts: a preview of the risks will be simple and
easier to establish their impact and economical plans to solve
them. The impact helps to assess each risk for the possibility of
its happening and the consequence or cost of the possible loss
related with it (Cloete, 2009). The impact helps to analyze
priorities of risks that evaluating severity of risks, that is
knowing what should be prioritized as unacceptable risks that

7. require to be treated. The possibility also shows some of the
costs involved as well the advantages of the treatment and the
success of the project.
RISK THRESHOLDS
Risk threshold is lower or upper limit depending on what
context it is used in. it can as well define the limit of an
acceptable expenditure or cost in project. For this project,
$10,000 cost overrun is acceptable to the firm and therefore
anything more is not acceptable. This means that project will
not tolerate any other risk. I will set the threshold of $10,000, I
will hold interviews and carry out meetings with stakeholders to
find their risk appetite, then assess their risk tolerance and
finally settled on risk threshold.
References
Assessment, R. (2016). Risk Management Plan. Hertfordshire
STEPS, ISL Hertfordshire County Council.
Broekx, S., Smets, S., Liekens, I., Bulckaen, D., & De Nocker,
L. (2011). Designing a long-term flood risk management plan
for the Scheldt estuary using a risk-based approach. Natural
hazards, 57(2), 245-266.
Cloete, K. (2009). Risk Management Plan.
Stephenson, G. R. (2001). Risk Management Plan (No.
DOE/NV--781). Bechtel Nevada Corporation (US).