ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Creation of Risk Management Plan

Updated on April 25, 2018

Projects are prone to risk irrespective of the size of the project. Hence the first logical move is to have a risk management plan to achieve success in a project. Examples of some projects are financial, legal, physical or non-financial. The main aim is to predict risks much before implementing the project.

An ideal risk management plan consists of several utilities and plans to lower risks. The plan must be such that the risk is either evaded or a part of it is transferred to other projects to reduce its full effect.

A systematic cost benefit analysis is done and on the basis of this other risk management plans could offer accepting the risk. Risk management plans depend on the way they are given priority in an organization. Comparative priority risks are allotted some emphasis. As an example, for some companies, operative or strategic risks are of greater importance and for other companies it could be legal or physical risks. Hence prioritizing the risk is what should be the final aim and plan.

Recommended Books on Risk Management Plan @ amazon

A final draft is made considering the risk management process. To make this draft, the risk management plan may go through the following:

  • Make a List: Identifying potential risks is of utmost importance before anything can be started or decided. It is important that even the smallest of details should not be neglected as these could at some point in time lead to potential risks. This fact is relevant especially where project management is concerned. Risks can be handled by first acquiring the categories of the project and then risks can be estimated for each category. For instance, for a cost category, find out the factors that could increase cost and then list them out.
  • Prioritize the Risks: Risks are arranged according to priority. The priority refers to the impact it can have and its chances of recurrence. Higher priority risks are handled first.
  • Developing and Action Plan: Action Plans are developed alongside each risk, which shows how to handle them when they occur, who is responsible for it and what the consequences are for it. Therefore, plans are proposed to reduce the effect of the risks and to avoid recurrence.
  • Human Resource Deployment: People are designated at specific points having specific roles. They are designated specifically to carry out action plans when the predicted risks occur and for this, they work together with the whole team. The actions are carried out at certain points in time with a certain time frame.
  • Communication: The plan has to be communicated to the people concerned (both internal and external). It also has to be explained to people who are primarily involved in the process along with the time frame, action and responsibilities.

The plan is formed keeping in mind the risk management process that forms the basic guideline and work together as a whole. Hence, the process discussed in step three goes alongside a complete understanding of the risk management process.

© 2013 Dilip Chandra

Comments

    0 of 8192 characters used
    Post Comment

    • Gvkishore profile image

      Kishore 

      5 years ago from Nellore

      yes as I am in search of the Risk management in simple language atlast i found t. thank you Dilipchandra12

    • dilipchandra12 profile imageAUTHOR

      Dilip Chandra 

      5 years ago from India

      Hello Gvkishore, thank you for reading and commenting. Am glad, you found the above article of mine useful to you.

    • Gvkishore profile image

      Kishore 

      5 years ago from Nellore

      It is very Important source for me , Thank You Mr Dileep

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)