Project Risk Management: A Detailed Report for PMAN 637

This report provides a detailed analysis of project risk management, emphasizing the importance of identifying and mitigating risks within a project's scope. It explores the necessity of a risk management plan, aligning with PMBOK guidelines, and highlights the significance of a risk register for tracking and managing potential risks. The report outlines the key steps in the risk management process, including risk identification, quantification, and response strategies. It also delves into PMAN methods of risk management, covering identification, analysis, and planning. Furthermore, the report discusses practical applications of risk management, such as document and training control, and concludes by summarizing the essential components of a robust risk management plan, thereby enhancing the accuracy of project outcomes.

Running head: REPORT ON THE PROJECT RISK MANAGEMENT PLAN
REPORT
ON
PROJECT RISK MANAGEMENT PLAN
Name of the Student
Name of the University
Author Note:

1Project Risk Management
Introduction:
The primary objective of this report is to discuss about project risk assessment process
since, after analyzing the project management activities there is a huge significance identify
the risk that are present in this scope. Followed by this aspect this paper has effectively
elaborated the necessity of risk management plan into the project management operation,
along with this it will also describe the PMAN methods of project management which will
provide a detail elaboration on how the application of risk management methods in the
organizational project management helps to reduce the risk factors. After analyzing the
objective behind this discussion it can be stated that this paper will provide a brief elaboration
on the project risk management procedure.
Risk Management plan:
According to PMBOK it has been noticed that there is a huge necessity of project risk
management as this holds significant impact on the project success. Followed by this aspect it
has been noticed that the primary objective behind the application of project risk management
is to identify the risk present in the project scope. Along with this it has been also noticed that
there is a huge impact of project risk management plan for developing an effective project for
real time use. In the risk management plan it helps to analyze the future risk that may occur in
the organizational field. Followed by this aspect a detail investigation on the future scope of
the project as well as the impact of the project helps to develop the risk management of a
project.
In order to develop an project risk management plan it includes several strategies
which includes the strategy to investigate the risk, quantification of risk, respond of the risk
and consist of effective risk supervision plan and risk mitigation approached as well.
Followed by this aspect in the risk identification process an investigation will be conducted

2Project Risk Management
which the purpose to determine the future risk present in that business scope. This process
will be initiated by performing unstructured or structured brainstorming which will help to
identify the possible risk that is present in the organizational structure. Followed by this in the
process of risk quantification it will evaluate the quantity of the risk based on their
possibilities of occurrence. In the process of risk response it will offers the mitigation strategy
which will help to reduce the identified risk with effective mitigation strategies. Followed by
this process constant monitoring process will help to reduce the possibilities of new risk to
occur.
Followed by the above mentioned process there is specific process risk management
which is mentioned below:
 Identify the risk for each project functionality and briefly analyze the project scope.
 Each identified risk needs to be listed.
 Analysis and the assessment of the impact of the identified risks is the next step.
 Determination of the project risk mitigation plan.
 Finalize the risk mitigation plan.
 Suggest effective mitigation plan for reducing the impact of the identified risk.
Need of Risk Register:
Followed by the above discussion there is a huge significance of risk register preset in
the Risk management process in which it will outline the identified risk, impact as well as the
mitigation strategies. Considering this aspect it has been noticed that there is a huge necessity
of risk register in the risk management plan which includes the factors related to the
determination of the project risk. Followed by this it will also in there is a huge need to rate
the identified risk as per their impact. Hence, in order to rate the risks there is a huge
necessity of risk register. Along with the above mentioned aspect it is also essential to

3Project Risk Management
incorporate risk register with the purpose to determine the controls as well as the other safety
protocol with respect to the identified risk. Hence, there is a huge essentiality of risk register
in project management.
Content of Risk Register:
Followed by the above mentioned aspects an investigation on the project risk
management process has provided me the knowledge that there are several significant
element present in the project risk register which includes the below mentioned elements:-
1. Description of the risk- in which it will consist an outline of the identified risk that
is present in the selected project development process.
2. Categories of risk- in which it will mention the categories of the identified risk such
as the risk related to the cost, resources, time as well as for scope of the project.
3. Serial number of risk- which will count the numbers of identified risk that will help
to determine the count of the identified risk.
4. Impact on project- indicates the impact of the identified risk that has been
accounted due to the presence of the risks.
5. Possibilities or the likelihood of the risk- indicates the possibilities of the risk that
are identified in the project scope as it will help to determine the ratio that the
identified risk will be occur.
6. Consequences of the identified risk- which includes the impact of the risk that has
been identified in the project scope in order to determine the how it will impact the
project.
7. Rank of the risk- will indicate the magnitude of the identified risk.
8. Risk mitigation plan- will provide the techniques to mitigate the risk that has been
identified in the project scenario.

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9. Owner of the risk- will indicate the person who will mitigate the risk that has been
determined.
10. Risk residual- will indicate the possibilities of the presence of the risk after the
application of the mitigation plan.
PMAN methods of risk management:
The three different kinds of the methods of risk management will be involving
identification, analysis and the planning part. Identification is considered to be the very first
step in the method of risk management. After the identification part, all the various potential
risks must be well analysed and lastly after having all the identification and analysis done it is
really very much essential to plan for the project. The methods of risk management is known
to be highlighting the importance of the analysis of risk and there are basically two different
forms of the analysis which will be involving the qualitative and the quantitative one.
Qualitative analysis of risk will be comprising of the judgement of expert, assessment of
impact, categorization of risk and lastly the urgency of risk. On the other hand, the
quantitative analysis of risk will be comprising of various distributions of probability, risk
analysis of cost and also the risk analysis of schedule.
Application:
There are a number of applications of risk management which will be involving:
Control of the document: The documents must be particularly ensuring uniformity which will
be in turn helping a lot for ensuring the quality.
Control of training: People must be well trained on various kinds of tasks as well as
documents and the particular procedure of training must be well controlled as well as
documented as a section of the entire compliance.

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Control of alternation: Any kinds of alternations must be well evaluated as well as
documented for making sure that the alternation will be possessing no impact upon both
safety as well as quality.
Preventative action: Various regulations must be needed involving the specific investigation
regarding the identification of problems and making efforts for preventing their occurrence.
Management of risk: Various tools which will be particularly designed for consolidating
various components of the management of risk.
Conclusion:
Lastly, it can be concluded that this paper has effectively addressed all of the above
mentioned requirement which is essential for developing a risk management plan in order to
determine the risk present in a project development process. Followed by this it can be stated
that this has effectively elaborated the aspect of risk register with the purpose to increase the
accuracy of the project risk management plan.

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Bibliography:
Dash, S.N. (MPGU, 2015) “PMP Prep: Qualitative vs. Quantitative Risk”
JISC (2010). Risk Management article (read only up to section entitled “Qualitative Risk
Analysis”, pages 1-7):
PMBOK Guide (PMI, 2017), Part 1, section 5.6 “Control Scope”, p.167 through 5.6.3.4
“Project Document Updates”
PMBOK Guide (PMI, 2017), Part 1, section 6.4 “Estimate Activity Durations”, page 194 to
section 6.4.3 “Estimate Activity Durations: Basis of Estimates” p.204 (important!)
PMBOK Guide (PMI, 2017, 6th ed.), Part 1 “Introduction: “Overview” to 1.2.2 “The
Importance of Project Management” pp.1-10
PMBOK Guide (PMI, 2017, 6th edition), Part 1, Ch. 11 “Project Risk Management”, page
395 to 11.1.2.3 “Meetings”, p.404
PMBOK Guide (PMI, 2017, 6th edition), Part 1, section 11.1.3 “Plan Risk Management:
Outputs” page 395 to 11.2.2.6 “Meetings”, page 405.
PMBOK Guide Part 1, Ch.13 “Project Stakeholder Management” p.503 to 13.1.2.3 “Data
Analysis” p.512
Practice Standard for Project Risk Management (PMI, 2009) Ch. 2 Principles and Concepts
-and- Appendix D, pp.72-76
Practice Standard for Project Risk Management, (PMI, 2009) Ch. 4 Plan Risk Management.