PRINCE2 (TM) Risk Management Strategy

1. Tools and Techniques

1.1. [Refer to any risk management systems or tools to be used, and note any preference for techniques which may be used for each step in the risk management procedure]

2. How to use this template

2.1. How to share this template with your team

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2.2. How to complete this template

2.2.1. Complete the sections in square brackets

2.2.1.1. [....]

2.2.2. Read these sections for help on the template

2.2.2.1. Purpose

2.2.2.2. Advice

2.2.3. Navigate using the links in Contents

2.2.3.1. Contents

2.3. Attribution

2.3.1. Copyright © AXELOS Limited 2009. All rights reserved. Material is reproduced with the permission of AXELOS

2.4. Get this template here

3. Overview

3.1. Purpose

3.1.1. A Risk Management Strategy describes the specific risk management techniques and standards to be applied and the responsibilities for achieving an effective risk management procedure.

3.2. Contents

3.2.1. The Risk Management Strategy should cover the following topics.

3.2.2. Introduction

3.2.3. Risk Management Procedure

3.2.4. Tools and Techniques

3.2.5. Records

3.2.6. Reporting

3.2.7. Timing of Risk Management Activities

3.2.8. Roles and Responsibilities

3.2.9. Scales

3.2.10. Proximity

3.2.11. Risk Categories

3.2.12. Risk Response Categories

3.2.13. Early-warning Indicators

3.2.14. Risk Tolerance

3.2.15. Risk Budget

3.3. Advice

3.3.1. The Risk Management Strategy is derived from the: Project Brief; Business Case; The corporate or programme management’s risk management guide, strategy or policy.

3.3.2. A Risk Management Strategy can take a number of formats, including: Stand-alone document or a section in the Project Initiation Document; Entry in a project management tool.

3.3.3. The following quality criteria should be observed:

3.3.3.1. Responsibilities are clear and understood by both customer and supplier

3.3.3.2. The risk management procedure is clearly documented and can be understood by all parties

3.3.3.3. Scales, expected value and proximity definitions are clear and unambiguous

3.3.3.4. The chosen scales are appropriate for the level of control required

3.3.3.5. Risk reporting requirements are fully defined.

4. Document information

4.1. Project Name

4.1.1. [name]

4.2. Date

4.2.1. [date]

4.3. Release

4.3.1. Draft/Final

4.4. Author

4.4.1. [author]

4.5. Owner

4.5.1. [owner]

4.6. Client

4.6.1. [client]

4.7. Document Number

4.7.1. [number]

4.8. Revision, Approvals & Distribution

4.8.1. Revision History

4.8.1.1. Revision # [....]

4.8.1.1.1. Revision Date

4.8.1.1.2. Previous Revision Date

4.8.1.1.3. Summary of Changes

4.8.1.1.4. Changes Marked

4.8.1.2. Revision # [....]

4.8.1.2.1. Revision Date

4.8.1.2.2. Previous Revision Date

4.8.1.2.3. Summary of Changes

4.8.1.2.4. Changes Marked

4.8.1.3. Revision # [....]

4.8.1.3.1. Revision Date

4.8.1.3.2. Previous Revision Date

4.8.1.3.3. Summary of Changes

4.8.1.3.4. Changes Marked

4.8.1.4. Date of next revision:

4.8.1.4.1. [....]

4.8.2. Approvals

4.8.2.1. Approval # [....]

4.8.2.1.1. Name

4.8.2.1.2. Signature

4.8.2.1.3. Title

4.8.2.1.4. Date of Issue

4.8.2.1.5. Version

4.8.2.2. Approval # [....]

4.8.2.2.1. Name

4.8.2.2.2. Signature

4.8.2.2.3. Title

4.8.2.2.4. Date of Issue

4.8.2.2.5. Version

4.8.2.3. Approval # [....]

4.8.2.3.1. Name

4.8.2.3.2. Signature

4.8.2.3.3. Title

4.8.2.3.4. Date of Issue

4.8.2.3.5. Version

4.8.3. Distribution

4.8.3.1. Distribution # [....]

4.8.3.1.1. Name

4.8.3.1.2. Title

4.8.3.1.3. Date of issue

4.8.3.1.4. Version

4.8.3.2. Distribution # [....]

4.8.3.2.1. Name

4.8.3.2.2. Title

4.8.3.2.3. Date of issue

4.8.3.2.4. Version

5. Introduction

5.1. [State the purpose, objectives and scope, and identify who is responsible for the strategy]

6. Risk Management Procedure

6.1. The procedure should cover activities such as:

6.2. Identify

6.3. Assess

6.4. Plan

6.5. Implement

6.6. Communicate

7. Records

7.1. [Define the composition and format of the Risk Register and any other risk records to be used by the project]

8. Reporting

8.1. [Describe any risk management reports that are to be produced, including their purpose, timing and recipients]

9. Timing of Risk Management Activities

9.1. [State when formal risk management activities are to be undertaken - for example, at end stage assessments]

10. Roles and Responsibilities

10.1. [Define the roles and responsibilities for risk management activities]

11. Scales

11.1. [Define the scales for estimating probability and impact for the project to ensure that the scales for cost and time (for instance) are relevant to the cost and timeframe of the project. These may be shown in the form of probability impact grids giving the criteria for each level within the scale, e.g. for ‘very high’, ‘high’, ‘medium’, ‘low’ and ‘very low’]

11.2. [Define the risk response categories to be used, which themselves depend on whether a risk is a perceived threat or an opportunity]

12. Proximity

12.1. [Provide guidance on how proximity for risk events is to be assessed. Typical proximity categories will be: imminent, within the stage, within the project, beyond the project]

13. Risk Categories

13.1. [Define the risk categories to be used (if at all). These may be derived from a risk breakdown structure or prompt list.]

14. Risk Response Categories

15. Early-warning Indicators

15.1. [Define indicators to be used to track critical aspects of the project so that if certain predefined levels are reached, corrective action will be triggered.]

16. Risk Tolerance

16.1. [Define the threshold levels of risk exposure, which, when exceeded, require the risk to be escalated to the next level of management. (For example, a project-level risk tolerance could be set as any risk that, should it occur, would result in loss of trading. Such risks would need to be escalated to corporate or programme management).]

17. Risk Budget

17.1. [Describe whether a risk budget is to be established and, if so, how it will be used]