Creating a risk management plan is something of high importance when undertaking a new project either at business level or even at government level. However, many people take it to be of less significance and think that that any issues arising could be dealt with later easily. Something which is true is that issues and problems can arise in any project at any time. If there is no risk management plan or crisis management plan in force, any issue or problem would result in great anarchy and chaos leading to disastrous results for the whole organization. Very small issues even can become disastrous without a comprehensive risk management plan.
In order to create a successful risk management plan a number of steps need to be taken. The managers of the firm must be firstly and most importantly aware of how the whole process of risk management works. Risk management refers to the management of all possible risks attached with a particular project, whereas, risks refer to the effects, positive or negative which may result if a particular project is undertaken. This further involves the understanding of various other factors such as, the events involved in the proposed project, the probability of those events occurring the likely impact of those events, the ways in which the negative impact of some events could be minimized, the total negative impact which is unavoidable in the end etc. If the management has good knowledge of all these factors and their importance in creating a risk management plan , they will be able to successfully formulate an adequate plan for their projects.
Here is preview of this Risk Management Plan Template created using Microsoft Word,
The next step involves defining the project which is proposed in detail and assessment of the risks involved. All aspects of the project must be looked upon and analyzed in detail and any risk attached to any aspect should be noted. The opinion of other people who have a high familiarity of the project should be taken as well in order to improve the success of the plan. After noting down all the risks associated with the project, the probability and severity of each risk should be analyzed. It is obviously impossible to be 100 % accurate in this. However, the managers should try to be as accurate as possible.
After assessing the possible risks attached with a project and the probabilities of them occurring the next step is to analyze the risk – control measures that could be taken to deal with and manage the risks. All possible ways should be identified and analyzed for each identified risk individually. Taking suggestions from others such as the organization’s employees and people who are familiar with the project would improve the ways collected for the management of all risks identified previously.
Finally, the managers have to make risk – control decisions whereby they need to decide on the ways in which the risks associated with the project will be managed if they arise in future. The managers will have to choose the best way of managing each risk from all the ways identified previously. The decisions undertaken will be captured in writing in order to formulate the Risk Management Plan. The process will not be finished yet, however. Something which needs to be done in addition is to determine the level of risk remaining in the end i.e the risk which is not covered by the plans decided upon. This risk left behind should then be analyzed and it should be decided whether it is acceptable or the plan needs to be modified further in order to better manage the risk.
In this way a successful risk – management plan can be created. After creating a risk management plan the management then needs to work upon implementing the plan, supervising it, evaluating it from time to time and making improvements if required. In order to improve the success of a risk – management plan, suggestions of other people who are familiar must be taken and the right people should be entrusted with the task of establishing the plan. Furthermore, the process should be carried out in small steps in order to reduce confusion and inaccuracies.
Here is download link for this Risk Management Plan Template,