--- title: "Risk management plan" subject: "ICT Project Management" chapter: 12 key: "semester_7/ict_project_management:risk-management-plan" source: https://www.bctengineer.com/q/semester_7/ict_project_management/risk-management-plan site: BCT Engineering --- # Risk management plan ICT Project Management · Chapter 12: Project Risk Management - Asked in: year not given - Video: [How to Create a Risk Management Plan](https://www.youtube.com/watch?v=9MAHX2Wv8pk) — Online PM Courses - Mike Clayton - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/ict_project_management/risk-management-plan - Whole chapter: https://www.bctengineer.com/md/semester_7/ict_project_management/chapter-12 ## Question What do you mean by a risk management plan? ## Short answer A risk management plan describes how risk activities will be structured, including methodology, roles, budgeting, timing, risk categories, probability and impact definitions, a probability-impact matrix, stakeholder tolerances, and reporting formats. It does not contain individual responses; those are in the risk register. ## Answer A **risk management plan** is a component of the project management plan that describes how risk management activities will be structured and performed in the project. It is the output of **Plan Risk Management**. It does not contain individual risk responses; those are recorded in the risk register. #### Contents | Element | Description | |---|---| | Methodology | Approaches, tools and data sources used | | Roles and responsibilities | Risk owners, team, who approves | | Budgeting | Funds for risk activities and contingency reserve | | Timing | When and how often risk processes are performed | | Risk categories | Often shown as a Risk Breakdown Structure (RBS) | | Definitions of probability and impact | Scales (very low to very high) for each objective | | Probability and impact matrix | Rating of risks as low, moderate or high | | Stakeholder risk tolerances | Thresholds of stakeholders | | Reporting formats | How risk results are documented and communicated | | Tracking | How risk activities are recorded and audited | #### Risk breakdown structure (example) ```text Project risk |-- Technical: requirements, technology, quality |-- External: vendors, regulation, market |-- Organisational: funding, resources, priorities |-- Project management: estimating, planning, control ``` #### Inputs and tools Inputs: project scope statement, cost management plan, schedule management plan, communications management plan, EEF and OPA. Tools: planning meetings and analysis involving the project manager, team, sponsors and stakeholders. #### Importance - Defines a systematic way to manage risk. - Ensures the level, type and visibility of risk management suit the project's size and importance. - Allocates resources and responsibilities. - Establishes a common understanding of risk ratings. **Example:** A plan for an e-governance project sets a risk review at every fortnightly meeting, defines "high impact" as a delay of over 4 weeks or a cost increase of over 10%, and allocates 8% of the budget as contingency. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. What does a risk management plan describe? A. The specific response chosen for each individual risk B. How risk management activities will be structured and performed in the project C. The final cost of all project risks D. The list of all risks with their root causes Answer: B. The plan describes how risk management will be done; individual risks and responses are kept in the risk register. (Key point: Purpose of the plan) 2. Where are individual risk responses recorded, if not in the risk management plan? A. Stakeholder register B. Risk register C. Procurement plan D. Scope statement Answer: B. The plan does not contain individual risk responses; those belong in the risk register. (Key point: Plan vs register) 3. What is a Risk Breakdown Structure (RBS) used for in the plan? A. Showing risk categories B. Scheduling risk reviews C. Calculating contingency reserve D. Assigning risk owners Answer: A. Risk categories are often shown as an RBS, e.g. technical, external, organisational and project management. (Key point: Risk breakdown structure) 4. Why does the plan define scales for probability and impact and a probability-impact matrix? A. To fix the project budget B. To select the contract type C. To give a common understanding of how risks are rated low, moderate or high D. To list the stakeholders Answer: C. Defined scales and the matrix establish a common understanding of risk rating. (Key point: Probability and impact definitions) ## Related in ICT Project Management - [Quality management plan](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aquality-management-plan) — ICT Project Management, chapter 10 - [Baseline management in project plan](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Abaseline-management) — ICT Project Management, chapter 7 - [Communication management plan](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Acommunication-management-plan) — ICT Project Management, chapter 11 - [Risk](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Adefine-risk) — ICT Project Management, chapter 12 - [Project risk](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aproject-risk) — ICT Project Management, chapter 12 - [Resolution of risk](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aresolution-of-risk) — ICT Project Management, chapter 12 ## Related in other subjects - [Risk management and its steps](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-management-define-steps) — Project Engineering, chapter 5, asked 2× - [Risk types and sources; rectify via risk management](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-define-types-sources-steps-c75) — Project Engineering, chapter 5 - [Risk management; qualitative, quantitative; steps](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-management-qual-quant-steps) — Project Engineering, chapter 5 - [Risk, sources of risk, risk management steps](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Arisk-define-sources-steps) — Project Engineering, chapter 5