Composite Risk Management Process

Composite Risk Management Process

A composite Risk Management Process is a method by which risks to the project (e.g. to the scope, deliverable, timescales or resources) are formally specified, controlled and managed during the execution of the project. The process requires accomplishing a number of actions to reduce the likelihood of occurrence and the severity of impact of each risk.

A Composite Risk Management Process is used to ensure that every risk is formally:

•              Identified

•              Quantified

•              Monitored

•              Avoided, transferred or mitigated.

When to use a Composite Risk Management Process

Although the Risk Management Process is undertaken during the ‘Execution’ phase of the project (i.e. the phase within which the deliverable are produced), project risks may be specified at any stage of the project life cycle. In theory, any risk identified during the life of the project will need to be formally managed as part of the Risk Management Process. Without a formal Composite Risk Management Process in place the objective of delivering a solution within ‘time, cost and quality’ may be compromised.

The Composite Risk Management Process is terminated only when the Execution phase of the project is completed (i.e. just prior to Project Closure).

How to use this template

This document provides a guide on the topics usually included in a Composite Risk Management Process. Sections may be removed, added or redefined at your leisure to meet your particular business circumstance.  Example diagrams, charts and tables have been added (where suitable) to provide further guidance on how to complete each relevant section.


Ex, Templates

Document Control

Document Information

©	Information
Document Id	[Document Management System #]
Document Owner	[Owner Name]
Issue Date	[Date]
Last Saved Date	[Date]
File Name	[Name]

Document History

Version	Issue Date	Changes
[1.0]	[Date]	[Section, Page(s) and Text Revised]

Document Approvals

Role	Name©	Signature	Date
Project Sponsor
Project Review Group
Project Manager©
Quality Manager
Procurement Manager
Communications Manager
Project Office Manager

Risk Form

PROJECT DETAILS©
Project Name:               Name of the project to which the risk relates Project Manager:           Name of the project manager responsible for mitigating the risk
RISK DETAILS
Risk ID:                        Unique identifier assigned to this risk Raised By:                    Name of person who is raising the risk Date Raised:                 Date on which this form is completed
Risk Description: Add a brief description of the risk identified and its likely impact on the project (e.g. scope, resources, deliverables, timescales and/or budgets)
Risk Likelihood: Describe and rate the likelihood of the risk eventuating (i.e. Low, Medium or High)	Risk Impact: Describe and rate the impact on the project if the risk eventuates (i.e. Low, Medium or High)
RISK MITIGATION
Recommended Preventative Actions: Add a brief description of any actions that should be taken to prevent the risk from eventuating Recommended Contingent Actions: Add a brief description of any actions that should be taken, in the event that the risk happens, to minimize its impact on the project
APPROVAL DETAILS©
Supporting Documentation: Reference any supporting documentation used to substantiate this risk
Signature:                                                                          Date:                  _______________________                              ___/___/____    PLEASE FORWARD THIS FORM TO THE PROJECT MANAGER