Risk management plans for your manufacturing plant

If you do not know what risk management is, it is the process used to identify, analyze, and respond to project risk. Risk management includes increasing the chances and consequences of positive events and decreasing the chances and consequences of negative events that can affect the projects outcome.

Here are the sections that should be included in every risk management plan.

Number one: Introduction
This section is a very detailed description about what the document is going to cover. For a risk management plan you can put in the definition of risk management and some things that they need to know to understand how risk management is supposed to work.

Number two: Risk Management Planning
This section is used to describe what is going to be involved in planning for risk management for the project that you are working on. You are going to want to talk about how meetings are going to take place, what you plan on doing during these meetings. These meetings are supposed to be a brainstorm session on risk management and prioritizing the risks that are identified for ongoing tracking.

Number three: Risk Identification
This involves figuring out what risks are going to affect the project, no matter how small the chance is you want to account for any risk that has the potential to affect the project. You also want to make sure that you document the characteristics of all the risks that you have identified. In this section, you are also going to want to identify the various people that are involved in the risk identification process. This should include the entire delivery tem, which is led by the Project Manager and the customer side team that is led by the project sponsor. Since this is an iterative process numerous cuts are going to be taken by the teams at the beginning of the project, but the list of risks is going to be constantly reviewed and revised throughout the project.

Number four: Risk Analysis and Response Planning
The analysis is the process that is going to be used to assess the impact and the likelihood of the identified risks. In this section, you are going to want to include how the risks will be analyzed and prioritized. You also need to use an analysis method and process that can evaluate the probability and consequences of the risks. The method and process used needs to be defined and described in close detail.

Response planning is the process of developing options and determining what you can do to enhance opportunities and reduce threats to the projects objectives. How effective your response planning is will actually determine whether certain risks increase or decrease for the duration of the project. This planning must be appropriate to the severity of the risk, but it also has to be cost effective and it must be timely in order for it to be successful. The response planning has to be agreed upon by all parties involved, but it also has to be realistic within the scope of the project.

Number five: Risk Monitoring and Control
This is the process of keeping track of the identified risks, monitoring residual risks, and identifying new risks. This process also includes making sure that the risk plans are being executed properly, but also covers evaluating the plans effectiveness in reducing risk. This will be an ongoing process; it will not end until the project itself has ended. In this section, you are also going to want to detail how the risks will be tracked on an ongoing basis.

Number six: Review/Approval
While you will not need to get a formal approval for the risk management plan it is important that it is something that both the delivery team Project Manager and the customer-side project sponsor sign off formally on. You also want to make sure that this is something that both leaders will communicate to with their team members.