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PRINCE2 2009 - Risk part 7

The PRINCE2® approach

Risk Management Strategy

Having reviewed the organizational- and programme-level documents, and before embarking on any risk management activities, a Risk Management Strategy should be developed for the project.

The purpose of this strategy is to describe how risk management will be embedded in the project management activities.

A key decision that needs to be recorded within the Risk Management Strategy is the Project Board’s attitude towards risk taking, which in turn dictates the amount of risk that it considers acceptable.
This information is captured in the form of risk tolerances, which represent the levels of exposure that, when exceeded, will trigger an Exception Report to bring the situation to the attention of the Project Board.

Example of risk tolerance

A large electrical retailer would not tolerate any unnecessary disruption to its support systems during the peak trading period, which extends from the middle of November through to the end of January.
Projects are not permitted to introduce any changes to the support systems during this period.
Therefore any risks in the Risk Register that mean the support systems would change in this peak trading window would need to be escalated to the Project Board.

For the Product Description of a Risk Management Strategy see the folder ‘Product Description outlines’ as part of the product package.

Risk management is a large area and is covered in depth in ‘The Complete Risk Management package’.

PRINCE2® is a Registered Trade Mark of the Office of Government Commerce in the United Kingdom and other countries.

Non - PRINCE2 information

This product contains EVERYTHING in the publications:

Managing Successful Projects with PRINCE2 - 2005 edition
Managing successful Projects with PRINCE2 – 2009 edition
Directing Projects with PRINCE2.
The Complete Project Management package.

And much more besides - at a fantastic price.