Prepare a list of the key artifacts/resources that will be used to compile a risk management plan

Whether you are preparing for the PMI Risk Management Professional (PMI-RMP) exam, or you are already a seasoned project manager seeking to make your risk management strategies more effective, compiling a strong risk management plan is critical. In project management, a risk management plan is not just about identifying potential risks but also defining how to manage them if they come to light. To create a plan, certain key artifacts or resources can prove invaluable by providing a solid framework and guidance.

1. Risk Management Strategy or Policy:

A risk management strategy or policy lays out your organization’s approach to identifying and treating risks. It sets up the standards, methods, and practices for managing risks in the business. This policy often describes the firm’s risk appetite, the roles and responsibilities in risk management, and the implementation of risk management activities.

2. Risk Register:

A risk register is a crucial artifact and is basically a log book for recording identified risks, their sources, potential impacts, and responses. All this information helps calculate the risk score (priority) on a consistent numerical scale. This register serves as a risk dashboard for tracking and controlling both identified and unidentified risks throughout the life cycle of the project.

For example:

In the above table, each risk is assigned with a unique ID. The description gives clear context to the risk. Likelihood and impact are measures usually rated on a scale from 1-5 (1-low, 5-high). The risk score is a product of likelihood and impact. Fishbone diagrams or Ishikawa diagrams can also be used to illustrate risks in a graphical format, outlining causes and effects.

3. Risk Breakdown Structure (RBS):

This is a hierarchical representation of identified risks, divided and categorized by risk source or type. Whether product-related, process-related, or resource-related, the RBS offers a categorized view of potential risks. It acts as a beneficial visual aid in understanding the risk profile of a project.

4. Risk Matrix:

A risk matrix is a useful visual tool used to assess the severity of risk. Risks are classified based on their likelihood of occurrence and potential for harm. This visual artifact helps in prioritizing the risks.

5. Risk Response Plan:

This is a document that lists out the strategies and actions to be taken if a risk event occurs. The primary responses for negative risks are avoid, mitigate, transfer, or accept, and for positive risks are exploit, enhance, share, or accept. The plan should include both reactive strategies (for identified risks) and contingency plans (for unidentified risks).

6. Risk Review Meetings and Reports:

Risk review meetings are crucial components of ongoing risk assessment and control, with key members of the project team meeting to discuss risk status and management tactics. Post-meeting, a report is generated that outlines the current status of risks, new risks emerging, and changes in existing risk responses. This artifact provides an opportunity to continually reassess the project’s risk landscape and adapt risk management practices as needed.

7. Lessons Learned Register:

At project closure (or specific project phases), teams can conduct a lessons learned session, where they review the effectiveness of the risk management approach and discuss what worked and what didn’t. These lessons are documented in a lessons learned register, and such artifacts can feed continuous improvement in future project risk mitigation strategies.

All these artifacts essentially form a toolkit for compiling an effective risk management plan. The selection and scale of use can fluctulate, depending on the project’s size, complexity, stakeholder requirements, and the risk environment. The main mantra for successful risk management, though, lies in the continuous update and review of these artifacts to remain proactive amidst changing project scenarios and uncertainties.

Remember, risk management is not about avoiding risks; it is about understanding them better to harness potential opportunities and to mitigate threats effectively. By leveraging the aforementioned artifacts and incorporating them strategically into your risk management plan, you have a means of turning risks from project killers into project enhancers.