RISK MANAGEMENT PLAN:
A risk management plan (RMP) forms the basis of all risk management actions and further risk activities for corporate, strategic business and project levels. Based on the findings reported in a recent questionnaire (Merna 2002) the contents of such a plan might be:
_ assignment of risk management responsibility
_ the corporate risk management policy
_ risk identification documentation – risk register, initial response options
_ risk analysis outputs – risk exposure distribution within the project, most significant risks, variation of project outcome values with risk occurrences, probability distributions of project outcome values
_ selected risk response options – risk allocation among project parties, provisions, procurement and contractual arrangements concerning risk, contingency plans, insurance and other transfer arrangements
Corporate Risk Management
_ monitoring and controlling – comparison of actual with anticipated risk occurrences, control of the project with regard to the RMP
_ maintenance of the risk management system – measures to update and maintain the RMP continuously and refine it
_ evaluation – recording risk information for further RMP cycles within the project and for future projects.
Fraser (2003) highlights some key recommendations that are fundamental
for the development of a successful risk management system (RMS):
_ Executive level sponsorship and leadership for the programme is required.
_ An RMS requires cultural and behavioural change.
_ The operating management and business owners must take ownership of and be committed to the programme.
_ There must be a formal structure and framework in place – the approach has to be transparent and when risks are identified and prioritised, information has to be shared across the board.