Abbott Project Management Playbook

4 R ISK M ANAGEMENT

Project Risk Assessment

Project risk management endeavors to identify and prioritize risks in advance of their occurrence and provide action-oriented information to project managers and other team members. Risk Assessment requires identification of events that may or may not occur and are therefore described in terms of likelihood or probability of occurrence, as well as their impact on objectives. It’s important to note that risk assessment is an iterative process that occurs throughout the project lifecycle and serves as a basis for effective project governance.

The Risk Management Process, the six processes are broadly defined as follows:

1.0 Plan Risk Management 2.0 Identify Risks

3.0 Perform Qualitative Risk Analysis 4.0 Perform Quantitative Risk Analysis 5.0 Plan Risk Responses 6.0 Monitor and Control Risks

4.1 P LAN R ISK M ANAGEMENT Defines the scope and objectives of the Project Risk Management process and ensures that the risk process is fully integrated into wider project management. The results of risk management planning are documented in the risk management plan. The plan serves to provide all project stakeholders with a common view of how the risk-related activities of the project will be handled, the degree of resources and effort to be committed, and a description of the stakeholders’ involvement and r esponsibilities in these activities.

Depending upon the size and complexity of the project, some or all the following elements will be present in a risk management plan.

Introduction

• • • • • • •

Project description

Risk management methodology Risk management organization Roles, responsibilities, and authority

Stakeholder risk tolerance

Criteria for success

• Risk management tools and guidelines for use • Thresholds and corresponding definitions • Templates • Communications plan • Strategy • Risk breakdown structure

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