Risk Management PlanSee table below of Examples of risk, likelihood, impact and mitigation strategies for the PCIG project.
Provide the following details for each identified risk:
- Risk reference - sequentially numbered from 1
- Risk - what can happen? Determine which risks are the most important in terms of their potential to impact on the achievement of the objectives of the project. Where possible, try to combine similar risks to consolidate the number of potential risks.
- Source - how can this happen? Identify the source of each risk (i.e. how the risk can occur or what would prevent you from achieving the outcome).
- Impact from event happening. Identify the consequences of each risk (i.e. what does it mean to your organisation if it does happen).
- Treatment strategies. A treatment is a planned approach, process, policy, device, practice or other action that acts to minimise negative risks or enhance positive opportunities. What are the controls currently in place that affect the impact and/or likelihood of the risk? Controls may include checklists, regular planning meetings, procedures manual, contingency plans, audits or agreements in place.
- Effectiveness of current treatments. An adequate control implies that the risk is well managed and no further treatments are required. A marginally effective control implies that a treatment is not necessary; however this may depend on the level of risk. An inadequate control implies that treatments are necessary.
- Likelihood. Rate the likelihood of the identified risk occurring with the controls in place. Ratings are: almost certain; likely; possible; unlikely; rare.
- Consequence. Rate the consequence to the project outcomes of the identified risk occurring with the controls in place. Ratings are: insignificant; minor; moderate; major; catastrophic.
- Current risk rating. See risk rating table (below) for details.
- Acceptable/ unacceptable? Top of page
Examples of risk, likelihood, impact and mitigation strategies for the PCIG project
Low / Med / High
|Council rejects application||eg. Low. |
All works satisfy building codes, etc.
|High/Med/Low||Ensure all works will satisfy necessary codes, etc.|
|Delays in Council approvals||May depend on how extensive project is, complexity, zoning etc.||High/Med/Low||Prior contact with Council to seek guidance, directions, in-principle support.|
|Budget shortfalls||Project has been appropriately scoped to cover all known contingencies/ Project will be fully funded by Grant.||High/Med/Low||Develop budgets to fully plan for known likelihoods and factor in relevant contingencies. Take a competitive approach to the market.|
|Financial||Where additional finances are required above Grant funds.||High/Med/Low||Ensure necessary assurances are in place from lending sources prior to commencement of project.|
|Construction delays||May depend on scope of project; availability of trades; weather; price escalations.||High/Med/Low||Ensure project manager/coordinator is fully capable and has submitted appropriate documentation required by the Funding Agreement.|
|Disruption to services||Some services may or will be impacted during the works.||High/Med/Low||As much of the works as possible will be carried out in the after hours period.|
Back-up plans in place?
|Tenure||No issue? - practice owns the building. Lease agreements are in place?||High/Med/Low||Ensure all lease agreements are in place and owner consent is assured in writing.|
|Occupational Health and Safety||Need to become familiar with all necessary requirements.||High/Med/Low||Appoint a person to have Occupational Health and Safety responsibility for the project.|
|Unanticipated additional works||Site preparation difficulties encountered only after the project has commenced. Rock, sewerage, easements, etc||High/Med/Low||Provide for as a contingency. Inform Department if substantial issues re costs/delays.|
Risk rating tableThis table uses the following codes for the risk rating:
- L - low
- M - moderate
- H - high
- E - extreme
Likelihood Insignificant consequence Minor consequence Moderate consequence Major consequence Catastrophic consequence Almost certain L M H E E Likely L M H H E Possible L M M H E Unlikely L L M M H Rare L L M M M