project risk management plan template excel

Transfer the Risk: Assigning the risk to a third party mitigates the consequences of risk by placing responsibility on a third party.However, the project manager can reduce the risk by setting deadlines, following up with vendors on shipment status, and sourcing as many materials as possible from local vendors. For example, if the building materials required to start construction are arriving from multiple vendors, the risk that certain materials will be delayed is out of the project manager’s control and can’t be eliminated. Reduce, Mitigate, or Control the Risk: The goal of reducing risk is to accept the identified risk and apply measures to minimize its impact.For example, if there is a chance a project will be slightly over budget, an acceptance strategy might be to assess and acknowledge the consequences of going over budget. Accept or Assume the Risk: If the consequences of the risk are not dire, the team may choose to acknowledge, but not act on, the risk.For example, if there is a risk that scheduling conflicts might delay delivery, the team can create a comprehensive calendar to prevent these conflicts. Avoid the Risk: Avoiding the risk involves taking action to resolve or eliminate the threat.The following types of risk mitigation processes and strategies may be helpful as you assess, plan for, manage, and monitor your project risks: A risk mitigation plan involves measuring the impact of the risk and preparing a response strategy. Some strategies include avoiding, assuming, controlling, or transferring risks.

Maximize Shareholder Value: By reducing unanticipated costs and increasing the success rate of projects, risk mitigation helps maximize shareholder value.Īny risk mitigation process or strategy will help reduce risks to a project.Produce a Historical Audit Record: Risk mitigation provides an audit record of risk handling effort in a project that may provide useful insight for future projects.Reduce Project Costs: When teams are able to complete projects on or ahead of schedule, it reduces the project’s cost.More Predictable Schedules: Project managers who enforce risk mitigation strategies experience fewer surprises and therefore have more predictable project schedules.Faster Project Completion: Risk mitigation actions reduce overall project risk, thus accelerating project completion.In his comprehensive study, “Risk Mitigation Strategies in Innovative Projects,” Riaz Ahmed explains that incorporating risk mitigation can bring about the following benefits:

“It is very likely that the product quality begins to suffer when, due to budget, the project schedule is compressed into a tighter delivery period or resources must work longer hours to complete the project sooner.” Alexis Nicole White, a senior project management consultant with North Highland, stresses that when project costs increase, the quality of a product suffers. The success of a project depends on whether or not project managers can either prevent or mitigate the impact of adverse risks.

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Project risk management plan template excel