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11 - PROJECT RISK MANAGEMENT

The Plan Risk Responses process follows the Perform Quantitative Risk Analysis process (if used). Each risk
response requires an understanding of the mechanism by which it will address the risk. This is the mechanism
used to analyze if the risk response plan is having the desired effect. It includes the identification and assignment
of one person (an owner for risk response) to take responsibility for each agreed-to and funded risk response. Risk
responses should be appropriate for the significance of the risk, cost-effective in meeting the challenge, realistic
within the project context, agreed upon by all parties involved, and owned by a responsible person. Selecting the
optimum risk response from several options is often required.

The Plan Risk Responses process presents commonly used approaches to planning responses to the risks.
Risks include threats and opportunities that can affect project success, and responses are discussed for each.

11.5.1 Plan risk responses: Inputs

11.5.1.1 risk Management Plan

Important components of the risk management plan include roles and responsibilities, risk analysis definitions, 11
timing for reviews (and for eliminating risks from review), and risk thresholds for low, moderate, and high risks. Risk
thresholds help identify those risks for which specific responses are needed.

11.5.1.2 risk register

The risk register refers to identified risks, root causes of risks, lists of potential responses, risk owners, symptoms
and warning signs, the relative rating or priority list of project risks, risks requiring responses in the near term, risks
for additional analysis and response, trends in qualitative analysis results, and a watch list, which is a list of low-
priority risks within the risk register.

11.5.2 Plan risk responses: tools and techniques

Several risk response strategies are available. The strategy or mix of strategies most likely to be effective
should be selected for each risk. Risk analysis tools, such as decision tree analysis (Section 11.4.2.2), can be
used to choose the most appropriate responses. Specific actions are developed to implement that strategy,
including primary and backup strategies, as necessary. A fallback plan can be developed for implementation
if the selected strategy turns out not to be fully effective or if an accepted risk occurs. Secondary risks should
also be reviewed. Secondary risks are risks that arise as a direct result of implementing a risk response. A
contingency reserve is often allocated for time or cost. If developed, it may include identification of the conditions
that trigger its use.

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©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Fifth Edition 343

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