Risk Management Plan Template
The Risk Management Plan is an evolving document that will change over the life of the project, with risks increasing and decreasing at different phases. The Risk Management Plan should be developed in consultation with the Risk Taxonomy which has been developed to aid in the preparation of the Risk Management Plan and provides a compilation of the most common risks related to project management. The Risk Taxonomy provides for standard category definition, sources of risks, risk name and descriptions, and potential consequences. These are intended to be provided as a starting point, and to be tailored and modified to meet the specific needs of the individual projects.
The Risk Management Plan is the document that specifies the approach, the management components and the resources to be applied to the management of a risk. The Risk Management Plan should be developed in conjunction with the Preliminary Project Plan, and updated with the Project Management Plan. It is also to be submitted and attached to the Investment Analysis Report (IAR) when seeking project approvals.
The Residual Risk Allowance associated with the planned contracts, which will be used by Acquisitions Branch to establish the Pre-Approved Amount for Anticipated Amendments (PAAA) to allow for efficiencies in processing amendments to the consultant contract.
The Risk Management Plan Template provided in Excel format is to be used for the generation the Project Risk Management Plan and by categorizing the risk, related sub-plans will be automatically generated in the tabs found in the template:
Instructions for Use
IMPORTANT – The user should enter their risk data into tab 1 - Data Entry RMP as tab 2 - Project RMP, tab - 3 Construction Contract RMP and tab 4 - Consultant Contract RMP will self-populate. MCP Projects AND/OR projects OVER $30M must UNHIDE* columns M to P and input OPI, TIMELINE and Monitoring Status columns under each tab. Those projects can ignore the comment under "Controls & Risk Response Strategy" column with respect to OPI and Timeline.
*To unhide, select columns L to Q, right click on mouse and click UNHIDE.
The Risk Management Plan should be developed in consultation with the Risk Taxonomy, available in tab 5. The Risk Taxonomy has been developed to aid in the preparation of the Risk Management Plan and provides a compilation of the most common risks related to project management.
- Individual risks are to be assigned one of four "Application" types from the drop-down menu in column "C" as follows:
- Strategic Risks
- Consultant Contract Risks
- Construction Contract Risks
- Project Risks
- For asset / construction projects, the following sub-plans to the Project Risk Management Plan will be automatically generated, each in the separate tabs for use with Acquisition Branch to establish the PAAA, named as follows:
- Consultant Contract Risk Plan
- Construction Contract Risk Plan
The residual risk amount will be used by the Real Property Contracting Directorate as a guideline in establishing the PAAA for construction and consultant contracts.
- In order to provide some organization to the listing of the risks, column "B" - "Risk Category" categorizes the risks into the following groupings:
- Project Scope Delivery
- Site/Asset/Building Actual Conditions
- Resources External to Project Management Team
- Government/PWGSC/Public/Client Context
- Project Team/Human Resources
- Project Implementation
It is recognized that risk elements can often impact more than one aspect, hence driver or most important impact for the risk element should be considered when selecting the risk "Source of Risk" in column "C".
- Ensure that the entries for the columns B, C, F,G and J ( Application, Source of Risk, Likelihood/Probability, Impact and Risk Response) are entered using the drop-down selections in the cells.
- The "Risk Overall Grading" will be automatically generated as per the "Risk Assessment 3X3 Matrix" based upon the assessments of High, Medium or Low entered in column F and G (Likelihood/Probability and Impact). See Risk Assessment Matrix below.
- The Risk Response (Column J) is the selected strategy for minimizing risks before they materialize. The choices are the following: Avoidance, Transfer, Mitigation and Acceptance. Mitigation of risks represents efforts to ensure a systematic reduction, prevention and/or sharing of risk. The use of the risk response "Acceptance" should be minimized and only used in cases where it is not possible to completely eliminate any likelihood & impact of risk. Accepting risks should still signify that existing resources are used to the best of their capabilities to address the risks.
- The residual risk is calculated based on the "Risk Overall Grading" as a percentage of the inherent risk after the risk response plan has been implemented. These are shown below:
Overall grading Residual Risk allowance/ Inherent Risk Allowance Low <25% Medium 25-50% High >50%
- After calculating the residual risk allowance, your "Risk Overall Grading" should now be modified (with the exception of accepting the risk being the risk response strategy). At this point, return to column F, G and modify the Likelihood/Probability and Impact columns as required.
- After making entries/changes to the Risk Management Plan template, refresh each individual risk plans by pressing the "Refresh" button located at the top left of each worksheet.
- Date modified: