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48 risk challenges to the project and to initiate an appropriate The planning team will have the final input into the risk management response. mitigation and planning efforts. They will determine who A comparison of each risk's probability and impact yields a "owns" the risk and is responsible for ensuring that it is man- relative ranking of the risks that can be used for risk man- aged effectively. The risk management plan and/or risk regis- agement or, if warranted by project complexity, a detailed ter should clearly identify who is responsible for managing quantitative risk analysis using probabilistic models to and resolving each individual risk. generate ranges of possible outcomes. 5.4.2 Planning Phase Risk Mitigation and Planning Tools 5.4 Planning Phase Risk Mitigation Risk mitigation and planning tools that most generally and Planning apply the planning phase are listed in Table 5.3. Refer to the The objectives of risk mitigation and planning are to ex- Appendix A for complete tool descriptions. plore risk response strategies for the high-risk items identi- fied in the qualitative risk assessment or quantitative risk 5.4.3 Planning Phase Risk Mitigation analysis. The process identifies and assigns parties to take re- and Planning Outputs sponsibility for each risk response. It ensures that each risk re- The outputs of the risk mitigation and planning step are quiring a response has an owner. The key output is the risk an organized and interactive risk management strategy and register or risk management plan. a plan for adequate resources. The Risk Management Plan As shown in Figure 5.1, risk mitigation and planning in the (R3.1) tool in Appendix A provides a good example of this planning phase requires less effort than in later project devel- output from Caltrans. The example risk management plan opment phases. This lower level of effort stems primarily from Caltrans describes a clear approach to the assignment of from the fact that projects, project teams, and project man- responsibility. It also provides items that require resource in- agement structures are generally not in place until the pro- vestment and a method for calculating their costs. gramming phase. Detailed risk mitigation and planning Risk mitigation and planning is iterative and includes de- efforts are reserved only for those identified moderately com- scribing and scheduling the activities and processes to assess plex and major projects in the planning phase. (identify and analyze), mitigate, monitor, and document the risk associated with a project. For minor or moderately com- 5.4.1 Planning Phase Risk Mitigation plex projects, the result should be a Risk Register (R3.12). For and Planning Inputs major projects or moderately complex projects with a high degree of uncertainty, the result should be a formal Risk The ranked list of risks from the first two risk management Management Plan (R3.1). steps is the key input to the mitigation and planning effort. Risks mitigation and planning begins by developing and doc- umenting a risk management strategy focused on the key 5.4.4 Planning Phase Risk Mitigation risks. Early efforts establish the purpose and objective; assign and Planning Relationship responsibilities for specific areas; identify additional techni- to Project Complexity cal expertise needed; describe the assessment process and The risk mitigation and planning effort should be congru- areas to consider; delineate procedures for consideration of ent with project complexity. Each risk plan should be docu- mitigation and allocation options; dictate the reporting and mented, but the degree of documentation will vary with project documentation needs; and establish report requirements and monitoring metrics. This planning should address evaluation of the capabilities of potential sources as well as early indus- Table 5.3. Planning phase risk mitigation try involvement. and planning tools. The list of risks is used as the basis for the solicitation of mitigation and planning options from key managers and ex- Tool Moderately perts. The mitigation and planning options will require cost- Complex Minor Major (N/A) benefit analyses (e.g., the cost of implementing a mitigation effort versus the reduction in probability or impact to a risk) to assess the viability or impact of the options. Estimators and R3.1 Risk Management Plan risk analysts will therefore have key input into the mitigation R3.12 Risk Register and planning process.