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A Risk Management Plan to help Prepare for the Unexpected

September 8 2011

Having a good risk management plan in place will help prepare your business for any unexpected impact of a risk or issue that could negatively affect your company. This is an important concept that must be devised so your projects and daily business routine is not effected to the point of disruption.

To begin in the creating of a risk management plan, the use of a template from a project management office program is advised. This will already have the structure in place that has been proven to help business operating in the current market condition.

When creating your risk management plan, you will able to list the known risks that could impact your business by properly identifying them. This is an important step that should include any risk, no matter how small or insignificant you might feel it has a chance of impacting your business.

Once all of your risks are identified in your risk management plan, then you must categorize them and prioritize them appropriately. Both the impact potential and the possible impact damage of each risk needs to be considered in the prioritization listing. At first there should be two lists with the final determination coming after you compare the two lists.

The next step in developing your effective risk management plan is to determine if any of the risks can be mitigated by preventive action. This needs to be done to each risk independent of each other. In many instances, the preventive action of one risk will be the same for another. In this case there is greater justification for this preventive action to be done.

Another section of your risk management plan will be contingency actions for the risks that cannot be totally mitigated by preventive action. The best solutions are to find a way to reduce the impact potential to it greatest degree.

The risk management plan should then have a schedule to implement the actions needed to prevent or mitigate the impact of the risks. The last section should include a means to monitor all of the risk during the project, to know the situation to help you be better prepared for the unexpected risk if it occurs.