Risk management is a crucial aspect of project management, involving identifying, analyzing, and mitigating potential risks that may impact project objectives. The Plan Risk Management process, as outlined in the 6th Edition PMBOK® Guide, requires various inputs to effectively manage risks throughout the project lifecycle.
Key Facts
- Project Charter: The project charter provides a high-level project description, project boundaries, and any high-level risks that the project sponsor is aware of and concerned about.
- Project Management Plan: The project management plan, including subsidiary management plans for different knowledge areas, provides information on how risks should be managed in alignment with other project components.
- Project Documents: Various project documents, such as the stakeholder register, assumption log, issue log, lessons learned register, requirements documentation, and resource requirements, offer valuable insights into identifying and assessing risks.
- Enterprise Environmental Factors: Overall risk thresholds set by the organization or key stakeholders, published material like commercial risk databases or checklists, benchmarking results, and industry studies of similar projects can influence the risk management approach.
- Organizational Process Assets: Organizational risk policy, risk statement formats, templates for the risk management plan, risk breakdown structure, common definitions of risk concepts and terms, authority levels of decision making, and roles and responsibilities related to risk management are important organizational process assets.
- Agreements: If the project involves external procurement, agreements with suppliers may contain information such as milestone dates, delivery dates, contract type, acceptance criteria, and awards and penalties that can impact project risks.
- Procurement Documentation: For projects involving external procurement, reviewing initial procurement documentation is crucial as it can introduce additional project risks or affect overall project risk.
Project Charter
The project charter provides a high-level overview of the project, including its scope, boundaries, and objectives. It may also contain high-level risks identified by the project sponsor or other stakeholders. This information helps risk managers understand the overall context of the project and potential areas of concern. (4squareviews, 2018)
Project Management Plan
The project management plan encompasses various subsidiary management plans for different knowledge areas, such as scope, schedule, cost, quality, and resources. These plans provide detailed information on how the project will be executed and controlled. Risk managers use this information to align risk management activities with other project components and ensure consistency in risk management practices. (4squareviews, 2018)
Project Documents
Several project documents offer valuable insights for risk identification and assessment. The stakeholder register contains information on key stakeholders and their interests, helping risk managers understand potential sources of risk and stakeholder concerns. The assumption log, issue log, lessons learned register, requirements documentation, and resource requirements provide additional information on potential risks and areas that require attention. (4squareviews, 2018)
Enterprise Environmental Factors
Overall risk thresholds set by the organization or key stakeholders influence the risk management approach. Published material like commercial risk databases or checklists, benchmarking results, and industry studies of similar projects can provide valuable insights into potential risks and industry-specific considerations. (Projex Academy, n.d.)
Organizational Process Assets
Organizational process assets encompass various resources and guidelines that aid in risk management. Organizational risk policy provides guidance on risk management practices and acceptable risk levels. Risk statement formats, templates for the risk management plan, and a risk breakdown structure help standardize risk documentation and analysis. Common definitions of risk concepts and terms ensure consistent understanding among project team members. Authority levels of decision making and roles and responsibilities related to risk management clarify the decision-making process and accountability for risk management activities. (Projex Academy, n.d.)
Agreements
If the project involves external procurement, agreements with suppliers may contain information such as milestone dates, delivery dates, contract type, acceptance criteria, and awards and penalties. These contractual terms can impact project risks and should be considered during risk management planning. (Projex Academy, n.d.)
Procurement Documentation
For projects involving external procurement, reviewing initial procurement documentation is crucial. This documentation may reveal additional project risks or factors that could affect overall project risk. (Projex Academy, n.d.)
References
- 4squareviews. (2018, July 10). 6th Edition PMBOK® Guide–Process 11.1 Plan Risk Management: Inputs. 4squareviews. https://4squareviews.com/2018/07/10/6th-edition-pmbok-guide-process-11-1-plan-risk-management-inputs/
- 4squareviews. (2018, July 13). 6th Edition PMBOK® Guide–Process 11.2 Identify Risks: Inputs. 4squareviews. https://4squareviews.com/2018/07/13/6th-edition-pmbok-guide-process-11-2-identify-risks-inputs/
- Projex Academy. (n.d.). Plan Risk Management Process. The Projex Academy | PRINCE2 PMP APM LEAN6SIGMA. https://www.projex.com/plan-risk-management-process/
FAQs
What is the project charter, and how does it contribute to risk management?
- The project charter provides a high-level overview of the project, including its scope, boundaries, and objectives. It may also contain high-level risks identified by the project sponsor or other stakeholders. This information helps risk managers understand the overall context of the project and potential areas of concern.
What is the project management plan, and how does it relate to risk management?
- The project management plan encompasses various subsidiary management plans for different knowledge areas, such as scope, schedule, cost, quality, and resources. Risk managers use this information to align risk management activities with other project components and ensure consistency in risk management practices.
What project documents are useful for risk identification and assessment?
- Several project documents offer valuable insights for risk identification and assessment. These include the stakeholder register, assumption log, issue log, lessons learned register, requirements documentation, and resource requirements.
How do enterprise environmental factors influence risk management?
- Overall risk thresholds set by the organization or key stakeholders, published material like commercial risk databases or checklists, benchmarking results, and industry studies of similar projects can provide valuable insights into potential risks and industry-specific considerations.
What organizational process assets are relevant to risk management?
- Organizational risk policy, risk statement formats, templates for the risk management plan, and a risk breakdown structure help standardize risk documentation and analysis. Common definitions of risk concepts and terms ensure consistent understanding among project team members.
How do agreements with suppliers impact risk management?
- If the project involves external procurement, agreements with suppliers may contain information such as milestone dates, delivery dates, contract type, acceptance criteria, and awards and penalties. These contractual terms can impact project risks and should be considered during risk management planning.
Why is reviewing initial procurement documentation important for risk management?
- For projects involving external procurement, reviewing initial procurement documentation is crucial. This documentation may reveal additional project risks or factors that could affect overall project risk.
What are some examples of organizational process assets that can aid in risk management?
- Examples of organizational process assets that can aid in risk management include risk statement formats, templates for the risk management plan, risk categories organized into a risk breakdown structure, and common definitions of risk concepts and terms.