Risk Management Action Plan

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The project manager of any firm is responsible for a risk management plan. The plan will assist in foreseeing risks and estimating effectiveness of the processes with best practices. The plan must also encompass plans for mitigation of risks and provide a risk assessment format.

Risks are uncertain events and conditions which occur at any time. They can have both positive and/or negative consequences for any project if best practices are not implemented. This is why there is a lot of pressure on project managers to ensure that there is always a plan for anticipated and unforeseen risks. The plan must serve as a buffer to control the losses resulting from the consequences. A risk management action plan must be reviewed periodically to ensure that the project team is ready to handle all likely outcomes. This is an important best practice which project managers must implement.

The basis of any risk management plan is to include a risk strategy into the processes of any organization. Risk assessment is a necessary best practice in order to have a risk management action plan. There are four potential strategies which can be adopted for best practice in the risk management action plan.

First Potential Strategy:

Second Potential Strategy:

Third Potential Strategy:

Fourth Potential Strategy:

Whichever of these strategies one follows, the basic best practices must be implemented. This includes proper documentation, analysis, communication and other processes involved. Risk management requires thorough assessments and evaluations to have a strong risk management action plan.

Further reading: Corporate Governance | Audit | Performance Improvement

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