Risk Management and Mitigation Plan, Research Paper Example

What is a Risk Plan?

The purpose of a risk plan is to identify risks that may occur during the project and take steps to prevent their occurrence or at least minimize their impact in case their occurrence is inevitable.  Thus, a risk plan is not only concerned with the actual risks but also their potential impact. A risk plan involves a number of elements as described below.

Risk Management

Risk management has been determined to be the single best way to deal with the potential risks that may arise. Effective risk management involves not only properly understanding the risks but also being knowledgeable regarding potential preventative measures and solutions. Risk management includes an understanding of the nature of the risk, the categories under which potential risks may fall under, the probability of the risks to occur, and having a detailed plan regarding the management of the risk. In addition, risk management also takes into account the fact that timing is of paramount importance. Risk management usually involves four steps which are:

1. Risk Identification (Spotting Hazards) – Risk identification involves examining the event site or project and anticipating any risk factors that could arise and pose danger to the project or the project participants.
2. Risk Quantification (Risk Assessment) – This involves calculating the probability of risk and identifying the potential effects if the risks do occur. In other words, this step helps us organize the risks identified according to their potential severity and plan and allocate resources accordingly.
3. Implementing Solution (Fixing the Risk) – This stage involves taking steps to eliminate or isolate the risks identified earlier. It involves allocating resources, choosing the solutions among the available options, and fulfilling other administrative procedures.
4. Result Evaluation – This step evaluating the solutions that were implemented and the extent to which they succeeded in eliminating the risks. This step allows us to identify things that were done well and those that were not. In addition, it may also help us identify processes that added little value and could be avoided in the future. This step usually involves risk assessment template.

 Event Name and Location:

Date of assessment:

Assessment conducted by:

Weighted Scorecard

Total Weighted Score = 100

*Weighted Scales: Score (1 to 5) = 1 is the lowest and 5 is the highest.

Weight (1 to 10) = 1is the lowest and 10 is the highest.

Reference:

Fan, M., Lin, N., & Sheu, C. (2008). Project Management Template, Oxford University Press

Perminova, O., Gustafsson, M., & Wikstrom, K. (2008).Project Management and Implementation , McCrew, New York

Olsson, R. (2007).