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72R-12: Developing a Project Risk Management Plan [April 25, 2013]

72R-12: Developing a Project Risk Management Plan
AACE International, April 25, 2013

Price: $0 (Member) / $100 (Non-Member)

This recommended practice (RP) of AACE International defines practices for developing and implementing a risk management plan for any type of project for any project phase. A risk management plan defines how the project team intends to implement its applicable risk management process. This RP assumes the process is aligned with TCM Framework section 7.6 Risk Management (e.g. plan, assess, treat, and control risks over the project life cycle.) It is recommended that the risk management plan be part of an overall project execution plan (PEP) or similar integrated project plan to better ensure project objectives are achieved.

The risk management plan describes specific processes, procedures, organization, tools and systems that guide and support effective risk management throughout the life cycle of the project.

This RP is intended to provide guidelines (i.e., not a standard) for developing a project risk management plan. This will provide a basis for what most practitioners would consider to be good practices that can be relied upon, and that they would recommend be considered for use where applicable. In general, the risk management plan model includes:
• ensuring risk management objectives are addressed for all stakeholder and project requirements
• implementing an integrated set of work processes, procedures, and applications to plan, identify, analyze, evaluate, treat, and monitor risks specific to the life of the project
• implementing an organization’s integrated suite of risk management applications (tools and systems)
• identifying organizational roles, responsibilities, and accountabilities with respect to risk management
• producing, updating, and controlling the risk management deliverables
• communicating risk management information and deliverables
• initiating the risk management process
• capturing and disseminating learnings for future risk management planning
This RP will assist in developing a fit-for-use template which can be customized for each specific project.

According to TCM, “the risk management plan must describe what the project or asset management team recognizes as being the risk management objective so that it may be incorporated within the overall project execution plan and/or project charter.” The time invested in preparing, documenting, and communicating a solid risk management plan will increase the success of the execution of the project.

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