How do you Plan your Risk Management?
The risk management plan should be a part of your overall project plan. The risk plan for smaller projects can be as simple as a risk management matrix. Complex projects require more thorough risk analysis and planning. For each risk outlined in the risk matrix you will want to create a thorough analysis for each.
The main goal of creating the risk matrix is to prioritize your risks. You will never be able to eliminate all risk, but you can prioritize and document risks to attempt to mitigate or eliminate them.
The risk management matrix will document the following items:
1. Risk and Consequences - Brainstorm risks before you being your project and continue adding to your risk management plan as the project moves throughout it's lifecycle. What risks can be associated with this project? Will the risks affect the schedule, resourcing or budget?
2. Probability - the table should contain a probability of the risk occuring. This can be a percentage or a number.
3. Impact - what is the impact to the project if the risk should occur? Build a scale appropriate for the project - smaller projects can use a simple impact of 1-5 (minimal to major) whereas larger projects may want a more formal scale.
4. Priority - Probablity * Impact will give you an idea of the priority of the risk. Higher priority items should be mitigated and planned for before lower priority items.
5. Mitigation Response - a brief overview of mitigation steps to eliminate or reduce the risk.