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Using a Risk Management Plan

September 9 2013

It takes more than just having a risk management plan in place for it to be effective.  You must use it in an active manner for your project to avoid the costs and delays that many of the risks that could impact your project in the course of its evolution. This is the responsibility of the project manager.

The main reason the manager is responsible for activating the risk management plan is generally they are the one that created it. This is done with the aid of the project management template program. This allows for the project manager to assemble a risk plan that will follow a known path to successfully dealing with the risks and their inherent dangers when they impact your project.

Not all of the dangers in the risk management plan will have the same influence on your project. For this reason they need to be categorized according to their impact potential and severity of the impact when it does occur. Once this is done with all the possible risks listed, you can then begin to formulate how you will deal with each individual one.

In the risk management plan you have devised, there will be a need to immediately take steps to deal with the ones that you know will impact your project. One of the most common risks is the delivery of raw materials on time every time. This risk has moved up in the priority list in recent years since many businesses are run in a manner of “Just in Time”. This way of running a business helps to save on your overhead due the reduced need to have an inventory and space to store material. The down side is you can run out of material. To cover this, a local supplier that can be used as a stop gap measure of supplying the material is recommended.

The need for a risk management plan is real. When implemented properly, you can better deal with the impacts because you already have a path to follow in place. This will save your organization time and money.