Include your risk management plan – your project’s approach to risk management – in your IPP. What is the methodology to be used in your risk approach? How will risks be identified? Analyzed (qualitative? quantitative?)? What is the process for Monitoring and Controlling? Consider roles/responsibilities, definitions of probability and impact. What is the timing for risk work? How will it be paid for? The PMBOK has a good template to use as the basis of your Risk Management Plan.
Part 2: Risk Register
You will use the attached risk register to report the results of your risk analysis and to guide your risk analysis. To complete the risk register, you will need to complete the following steps:
Identify at least 12 to 15 risks. Write a clear risk statement for each risk based on the template given in the lecture. If clear risk statements are not written for each risk, your grade will be greatly reduced.
Perform qualitative analysis on all risks, creating a probability and impact matrix similar to one in either the reading or the lecture
Perform quantitative analysis using Expected Monetary Value on at least 8 risks; you may use the example templates covered in the lecture to support this analysis, or one from the reading or a past course
Identify the risk response type and provide a description of the risk response plan
Assign a person responsible for monitoring each risk and implementing the risk response plan
Please note that the risk register is not your risk management plan. This is your risk statement, includes the analysis of each risk, identifies the owner and triggers, defines the risk response strategy and the contingency plan for each risk. It is prepared using the guidelines in the Risk Management Plan as the approach.
Part 3: Contingency Reserve Policy & Request
Based on your risk assessment and analysis, you should be ready to request a contingency amount for your project. For this section, you need to make a specific statement as to the amount you are requesting, and as part of that request, you need to show justification for the amount based on your risk analysis. Additionally, you need to draft a reserve policy that addresses the following: 1) When contingency funds may be used; 2) How funds are requested; 3) Who authorizes the use of contingency funds.