How To Write a Risk Management Plan

Whenever a company or business develops a new project or product, it will normally require a comprehensive risk management analysis report or plan to determine whether pushing through with it is really worth it. This will include any type of risk, be it in the financial, legal, or physical aspect. The report or plan will also determine any consequences that may arrive once a project is put into motion or a product is manufactured and marketed. Developing and writing this type of report is not really that difficult since you need not do a lot of research to determine the risks involved should you pursue the planned course. Here is a simple guide on how to write and compile a risk management plan.

  • Determine the risks. This is the first step. It will involve hours of brainstorming with your team as well as a few more hours of market research. The easiest way to do this is to prepare a comprehensive SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities, and Threats. The risks will most likely come out through the Weaknesses and Threats part of the analysis. In general, though, just coming up with a comprehensive list of risks should do the trick.
  • Organize the list. Coming up with the risks pertaining to a project or product is easy. You can do it by focusing on each aspect of the project or product. For instance, for the financial part, focus on the risks when it comes to the budget, namely rising costs, poor sales, subpar marketing, warranties, and the like. Enumerate each risk based on the aspect or element of the project. This will make it easy for you to determine which risks should be prioritized at the top of your plan.

    When prioritizing the risks that you enumerated, base it on a number of factors such as the probability of it happening and the impact and consequence should that particular risk unfold.

  • Develop an action plan. This is where the meat of your risk management plan comes into play. While determining the many risks is a good start, developing action plans per risk is where the true work begins. An action plan is basically what your team will do should specific risks comes into fruition. Each determined risk should have a specific action plan. Some risks may be linked together and may occur in sequence. If that is the case, then a set of action plans must be developed to resolve these problems. Now, an action plan is not only designed to remedy any problems that arise, it should also be developed to prevent any of the risks from happening.

An action plan will consist of methodologies, timetables, and implementation guidelines and policies. It should have a clear process and have backup action plans in place, should the primary action plan fail. Contingencies are great components in planning which will provide you many options later on.

The implementation of the risk management plan is straightforward. Simply assign the actions plans to be implemented to various team members for more focus. Again, the plans should be clear, the tasks well-defined, and the timetables strictly adhered to.


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