Project Implementation Plan (Page 19 of 20) in pdf

Project Implementation Plan Page 19

Page 19 of 20

FM0027-GDL-00034-E-V15

8. Risk management

All the preceding activities from the WBS onwards need to be conducted whilst considering the risks to

the project. Risks can affect the scope, duration and cost of a project, and risk identification should be

an activity that occurs throughout the planning of the project.

Once risks have been identified, their severity should be assessed, typically by evaluating their

probability of occurrence and their likely impact, and using a risk rating matrix such as that in Figure 4:

Risk Probability

Low

Medium

High

Low

Negligible

Low

Medium

Risk Impact

Medium

Low

Medium

High

Medium

High

Extreme

Figure 9: risk rating matrix

Risks that are judged to have significant severity should to be addressed by:

Avoiding the risk by ensuring that it can’t occur

Reducing either the impact or the probability by defining a mitigating strategy

Transferring the risk to someone else, for example through insurance or subcontracting

Each of these may require a change to the project plan, perhaps through a change to the WBS or the

activity sequence.

Less severe risks can also be accepted, typically contingency is built into the project plan to deal with

them if they occur.

9. Change Control Planning

The procedures to be followed when managing project changes during the execution phase of the

project need to be defined whilst planning. Procedures should be defined for changes to the scope,

changes to the schedule, and changes to the cost of the project. These procedures typically describe

the authorisation required and the resulting actions when changes of varying magnitudes occur.

Financial Mechanism Office, 12/16, Rue Joseph II, 1000 Brussels, Belgium . Tel: +32 (0)2 286 1701 . Fax: +32 (0)2 286 1789 . Email: fmo@efta.int .

Project Implementation Plan Page 19