Process: Plan Risk Management
Process Group: Planning
Knowledge Area: Project Risk Management
Purpose
The Plan Risk Management process involves defining how to conduct risk management activities for a project. It establishes the methodology, roles, responsibilities, budget, timing, and categories for managing project risk throughout the lifecycle.
Inputs
- Project Charter – Offers high-level information about project objectives, constraints, and stakeholders.
- Project Management Plan – Especially the scope, schedule, cost, and stakeholder plans, which influence risk exposure.
- Enterprise Environmental Factors (EEFs) – Risk attitudes, tolerance levels, industry standards, and regulations.
- Organizational Process Assets (OPAs) – Risk policies, historical risk data, templates, and lessons learned from similar projects.
Tools and Techniques
- Expert Judgment – Provided by stakeholders, subject matter experts, or consultants experienced in similar projects or industries.
- Data Analysis – Includes stakeholder analysis to understand risk tolerance and influence.
- Meetings – Used to collaborate on defining risk strategies, planning risk responses, and aligning on key risk categories and roles.
Outputs
- Risk Management Plan – A component of the project management plan that outlines:
- Risk methodology
- Roles and responsibilities
- Budgeting and timing for risk activities
- Risk categories (e.g., via a risk breakdown structure)
- Definitions of probability and impact
- Probability and impact matrix
- Reporting and tracking formats
- Risk thresholds
Role in the Process Group and Knowledge Area
- As part of the Planning Process Group, Plan Risk Management ensures that risk efforts are structured, consistent, and scalable to the project’s complexity.
- Within Project Risk Management, it serves as the foundation for all other risk-related processes.
Why It Matters
- Establishes a Risk Framework – Ensures everyone understands how risks will be approached and managed.
- Enables Proactive Planning – Provides structure for identifying, analyzing, and responding to risks early.
- Improves Consistency – Applies a common method to risk identification, scoring, and communication.
- Supports Decision Making – Helps determine how much effort and resources should be allocated to managing uncertainty.