subject: Planning Risk Management [print this page] Risk management is one of the key project management activities and hence it requires proper planning. But, how much time one should spend on risk management..may be in some cases the impact of the risk is not worth the time spend to plan and manage it. All such decisions and more are taken during Risk Management planning.
This is such an important process that requires involvement of Project Sponsor, Customer and other key stakeholders along with the project manager.
The key input to this process is the Scope Statement and the project management plan. The Scope statement is analyzed to look for any risk arising out of the project scope of work.
The project Management plan is also one of the input, as its important to know about the Project Cost and Schedule to do the risk planning. These plans are part of the Project Management plan.
For example, how much budget is available for the risk management activities are mentioned only in the cost management plan.
Enterprise Environmental Factors and Organization Process Asset are also listed as input.
The only technique to do risk management is planning meeting and analysis. Project Manager should coordinate such meeting and should be attended by the key stakeholders like Project Sponsor, Customer etc.
The output of this process is the Risk Management Plan and this has information like methodology used for Risk management, roles & responsibility of key people involved in Risk management, the budget for the risk management activities, the timing of the risk management activities meaning when to do which risk management activity.
Another important thing explained in the Risk management plan is the meaning of Probability and Impact. For example, is 50% probability a high probability?....well this depends on the person viewing this data. A Risk Averse person may think of 50% probability as quiet a high probability where as Risk prone person may not think of 50% as high probability.
Its the risk management plan that defines what is a high probability and what is high impact So that everyone involved in the project interprets the risk data in the same manner.
Risk Management Plan has information like budget and schedules for risk management activities and thats why it is an input for processes like cost estimation, time estimation, schedule development and cost budgeting.
