The project risk management plan template excel spreadsheet is helpful for project managers in the identification, analysis, and mitigation of the potential risks.
So, it works as a guide to structure and performs a risk management strategy. Thus, a free risk management plan template excel is vital for creating a good risk management plan.
In this article, you can understand the basics of project management risk plan template XLS and free download the excel templates.
Related Article: 12+ Free Project Tracking Templates for Excel | Project Trackers
What is a Project Risk Management Plan Template?
A project risk management plan template is a document helpful in the implementation of the project risk management process. Also, the process of risk management includes risk assessment and risk mitigation.
A risk is anything that can harm the project quality, performance, or timeline. So, the identification of project potential risks and defining the risk response for mitigation are two important functions of the project risk management plan.
Thus, there are four sections of a risk management plan:
- Risk Identification
- Qualitative and Quantitative Risk Analysis
- Risk Response Strategy Plan
- Risk Monitoring and Control
The project risk management plan template classifies the risk identification and analysis under the risk assessment matrix. While the risk response strategy and monitoring is a function of the risk mitigation plan.
Related Article: Free Issue Tracking Spreadsheet Template Excel | Project Issue Trackers
Free Download Project Risk Management Template Excel XLS
Project Risk Assessment Matrix
Project managers use a professional matrix for risk assessment during the risk analysis phase. It is a matrix that helps to analyze the potential of risk based on its severity of impact and probability of occurrence.
A 5-point scale is available on each severity and probability axis. Severity ranges from insignificant to catastrophic and probability ranges from rare to almost certain.
Thus, risk managers mark a risk with insignificant severity and rare probability as a low potential risk. While the risk with catastrophic severity and almost certain probability appears as an extreme potential risk.
Thus, its priority of risk-mitigating is set accordingly to avoid any impact on the performance and quality of the project during implementation.
Project managers consider a project with no extreme potential risk and mostly low potential risk as a safe project. While spend must more time in risk management planning of project with 1 or more extreme potential risk.
Risk identification is a creative, iterative, and disciplined process. So, its focus is to determine the potential risks that can realize and affect the project KPIs. Thus, there are several approaches used to find potential risks.
Project team brainstorming sessions are organized and 7W’s approach is implemented to identify the project potential risks.
Finally, the findings of the session are converted to a risk checklist. So, the project risk management team can use the risk checklist to identify risks.
Further, the proper research of the same type of projects is very helpful in the identification of potential risks.
Thus, the experience of project managers, project teams, and other stakeholders is the key to success for this phase of the project risk management process.
Also, a good approach is to focus on the categories to identify risks. So, separate brainstorming sessions with project stakeholders on technical, schedule, financial, environmental, and political categories proves a success to the risk identification phase of the project risk management process.
Furthermore, a risk breakdown structure (RBS) must be created for potential risk categories. So, it helps to figure out details of potential risks associated with the project risk category.
Related Article: Free Construction Progress Report Template [XLS] | Project Reports
Risk Analysis or Evaluation
The project risk management plan template excel is not limited to project risk identification. Also, it’s not enough to just identify the risk and go for mitigation. The most important thing is to find out the criticality of a risk.
It is important to know the probabilities of risk occurrence and possible impact on the project quality, performance, schedule. So, the risk management team performs quantitative and qualitative risk analysis.
This analysis helps to understand the impact and severity of potential risks on the project functions. Thus, risk response and mitigation strategies are implemented accordingly.
Further, the risk managers define a risk score to potential risks keeping in view their probability of occurrence and impact on the project quality, budget, and timeline.
So, the risk response strategy follows the risk score as a risk prioritization factor. Although, there are several approaches and analyses for the risk analysis. The risk assessment matrix is one of the best tools in this regard.
However, the project risk management plan template excel motivates the risk management team to use the 80/20 rule or Pareto principle.
So, those 20% minor risks or vital few that create an 80% impact on the project functions are identified and resolved at priority. While the remaining 80% with 20% impact is pushed down in the priority list.
So, a risk analysis or risk evaluation part of the project risk management plan template Excel XLS focus on understanding the potential risks based on their impact, severity, and likelihood of occurrence.
Risk Mitigation or Risk Response Planning
The risk response planning or risk mitigation is the third and most important part of the project risk mitigation plan template.
Its focus is to develop and devise strategies to reduce the impact and minimize the likelihood of risk occurrence.
The main focus is to make the probability of risk occurrence equivalent to zero. However, it isn’t possible all the time. So, the risk team makes an action plan to minimize the impact of potential risks on the project key performance indexes.
Therefore, the risk response planning focus on implementing the strategies to make sure risk don’t get realize during the project execution phase.
Further, the creation of the project contingency plan is also important. So, if anything goes wrong during project execution. The project contingency plan should be there to help in the dying situation.
Thus, risk mitigation planning and contingency planning are two main functions of the risk response planning part of the project risk management plan template.
Furthermore, risk response planning is also an iterative approach that keeps on working during the project execution stage as well.
So, the project manager’s key focus is to work on a critical few potential risks during the project planning stage.
Related Article: 45+ Free Project Management Spreadsheet Templates for Excel (2020)
Types of Risk Response Strategies
There are several risk response strategies. However, the project manager must identify the type of risk. If it’s an opportunity or a threat? So, the risk response is relevant to the nature of risk.
Thus, the project risk management plan template XLS helps to adopt the following threat or negative risk response strategies:
This strategy focus to reduce the likelihood of risk occurrence to zero.
This strategy focuses on minimizing the severity and impact of potential risks if the risk probability can’t be eliminated.
This strategy focuses on transferring risk management and cost of risk to some other party.
This strategy focuses on dealing with the possible consequences of risk realization.
Similarly, the following positive risk or opportunity response strategies are possible to implement using the project risk management plan template google sheets.
This strategy focuses on approaching the top management to take the responsibility of risk. As the lower team does not have the power to take steps and realize the opportunity.
This strategy is opposite to mitigation as the risk management team takes steps to increase the probability of risk occurrence. So, it can be realized.
This strategy focuses on ensuring the realization of risk. So, the steps to make sure the realization of opportunity is taken.
This strategy focuses not on taking any steps to realize the opportunity. So, if it realizes on its own, the project will take its advantage.
This strategy focuses on realizing the opportunity by teaming up with some other party.
Risk Monitoring and Control
Monitoring and control are one of the process groups of project management. It helps to ensure the accurate implementation of the project plan.
Thus, the project risk management plan template excel uses the monitoring and control function to ensure the execution of a risk management plan.
So, the risk management plan is implemented and monitored to ensure the efficiency of risk assessment and mitigation. Further, it’s an ongoing process that continues for the whole project life.
Examples of Project Risk Management Plan Template Excel
The project risk management plan template is useful for all types of projects. However, the most common risk management and risk mitigation plan templates are:
- Construction Project Risk Management Plan Template
- Software Project Risk Management Plan Template
- IT Project Risk Management Plan Template
Construction Project Risk Management Plan Template XLS
The construction projects are plagued with problems. Sometimes even a fine risk management plan of construction projects fails to perform.
Further, the construction project is more vulnerable to potential risks of technical, schedule, cost, people, and environmental categories.
So, a rigid construction project risk management plan template is necessary to implement, monitor, and control the project activities. Moreover, the use of construction risk logs is also common in construction projects.
Related Article: Free 2 Week Look Ahead Schedule Template XLS | Construction Schedule
Components of a Project Risk Management Plan Template
There are several types of project risk management plans. However, a basic risk management plan includes the following elements:
- Risk ID
- Risk Type
- Risk Trigger
- Impact Area
- Risk Score
- Actions to Take
- Milestone Check
- Date, Status, Comment
In conclusion, the project risk management plan template helps the risk management team to plan, implement, monitor, and control the risk strategies. So, it is useful for risk assessment, risk mitigation, and contingency planning of a project.
How to Make Project Risk Management Plan
The risk management process is the same as explained earlier. You just need to follow a step by step approach to making a rigid risk management plan for your project.
The following are the key steps of the risk management process for any project.
- Identify the potential risks for your project.
- Perform qualitative and quantitative analysis to analyze the risk impact on the performance and quality of the project.
- Plan the mitigation and response strategies for potential risks depending on their impact and nature.
- Monitor and control the risk occurrence during project implementation.
The above steps may seem a little hard to implement but every possible aspect of each step is well explained earlier.
However, the project risk manager shouldn’t leave any stone unturned to avoid the eruption of issues during the implementation stage.
Thus, it is essential to consider technical, financial, environmental, and political domains during the identification of potential risks.
Frequently Asked Questions
There are many questions in the FAQ list of project risk management plan template [XLS]. However, the basic ones are:
A risk management plan is a document used by project managers for risk identification, analysis, mitigation, and control of a project.
There are four major phases of the risk management process. Risk Identification, Risk Evaluation, Risk Response Strategy, and Risk Monitoring and Control.
There are five major strategies of positive risk or opportunities management. Escalate, Enhance, Exploit, Accept, and Share.
There are four major strategies of negative risk or threats management. Avoid, Mitigate, Transfer, and Accept.
Finally, it was all about the “Project Risk Management Plan Template Excel”. Please do share your feedback in the comments section and SUBSCRIBE us to learn more about Project Management.
Graphic Resources Credit: Designed by Freepik