You are the project manager of the NHH Project.
You are working with the project team to create a plan to document the procedures to manage risks throughout the project.
This document will define how risks will be identified and quantified.
It will also define how contingency plans will be implemented by the project team.
What document do you and your team is creating in this scenario?
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A. B. C. D.D.
The risk management plan, part of the comprehensive management plan, defines how risks will be identified, analyzed, monitored and controlled, and even responded to.
A Risk management plan is a document arranged by a project manager to estimate the effectiveness, predict risks, and build response plans to mitigate them.
It also consists of the risk assessment matrix.
Risks are built in with any project, and project managers evaluate risks repeatedly and build plans to address them.
The risk management plan consists of analysis of possible risks with both high and low impacts, and the mitigation strategies to facilitate the project and avoid being derailed through which the common problems arise.
Risk management plans should be timely reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks.
Most critically, risk management plans include a risk strategy for project execution.
Incorrect Answers: A: The project plan is not an official PMBOK project management plan.
B: The resource management plan defines the management of project resources, such as project team members, facilities, equipment, and contractors.
C: The project management plan is a comprehensive plan that communicates the intent of the project for all project management knowledge areas.
The document that the project team is creating in this scenario is the Risk Management Plan (D).
The Risk Management Plan is a formal document that outlines how risks will be identified, assessed, analyzed, and managed throughout the project lifecycle. The plan is used to ensure that risks are managed in a structured and consistent manner and to minimize their impact on the project's objectives.
The Risk Management Plan includes the following components:
Risk management objectives: The plan defines the objectives and goals of risk management for the project.
Risk management methodology: The plan outlines the process that will be followed to identify, assess, analyze, and manage risks throughout the project.
Roles and responsibilities: The plan specifies the roles and responsibilities of the project team members who will be involved in the risk management process.
Risk management budget: The plan includes details on the budget that will be allocated to manage risks.
Risk categories: The plan outlines the categories of risks that may arise during the project and how they will be managed.
Risk assessment criteria: The plan defines the criteria that will be used to assess the impact and likelihood of identified risks.
Risk mitigation strategies: The plan outlines the strategies that will be used to reduce the impact of identified risks.
Contingency plans: The plan defines the contingency plans that will be put in place in case of unforeseen events.
Therefore, in this scenario, the project team is creating a Risk Management Plan to document the procedures to manage risks throughout the project, including identifying and quantifying risks and implementing contingency plans.