7.4.7 Development of Risk Plan

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During the Project Initiation Phase - as it has been stated in paragraph 1.5.3.5 (Chapter 1) - the risks that might affect the potential project must be identified and their characteristics must be documented in both the Project Fiche and the Risk Log. This is the first formal milestone in the risk management process when the Project Owner examines any known risks that seem to threaten the project viability and decides whether to proceed with the project approval or not. The risks identified in this phase may be such risks as impending or mooted legislation, policy changes, staff re-organisation etc.

During the Planning Phase, the Project Manager must review the list of risks initially identified for the project to determine if all these risks remain applicable. In addition he must identify new risk variables that may have been introduced due to analytical planning of the project, provide a set of actions to be taken to both prevent the risk for occurring and reduce the impact of the risk in case that it eventuates.

Furthermore, the Project Manager must define the Risk Management Process which will be used from this point until the end of the project to ensure that every risk is formally:

Identified
Quantified
Monitored
Avoided, transferred or mitigated.

The Risk Planning involves the following steps (Figure 7-12):

Updating of Risk Log
Development of Risk Management Plan.

 

Figure 7-12: Steps to be followed for the development of the Risk Plan

 


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