Formal Risk Management Plan

The project development team's strategy to manage risk provides the project team with direction and basis for planning. The formal plan should be developed during the planning and scoping process and updated at subsequent project development phases. Since the agency and contractor team's ability to plan and build the facility affects the project's risks, industry can provide valuable insight into this area of consideration.

The plan is the road map that tells the agency and contractor team how to get from where the project is today to where the public wants it to be in the future. Since it is a map, it may be specific in some areas, such as the assignment of responsibilities for agency and contractor participants and definitions, and general in other areas to allow users to choose the most efficient way to proceed. The following is a sample risk management plan outline:
Introduction
Summary
Definitions
Organization
Risk management strategy and approach
Risk identification
Risk assessment and analysis
Risk planning
Risk allocation
Risk charter and risk monitoring
Risk management information system, documentation, and reports

Each risk plan should be documented, but the level of detail will vary with the unique attributes of each project. Red flag item lists, risk charters, and formal risk management plans provide flexibility in risk management documentation.