Frank is the project manager of the NHH Project. He is working with the project team to create a plan to document the procedures to manage risks throughout the project. This document will define how risks will be identified and quantified. It will also define how contingency plans will be implemented by the project team. What document is Frank and the NHH Project team creating in this scenario?
A.
Project management plan
B.
Project plan
C.
Risk management plan
D.
Resource management plan
Explanation:
The risk management plan, part of the comprehensive management plan, defines how risks will be identified, analyzed, monitored and controlled, and even responded to.
A Risk management plan is a document arranged by a project manager to estimate the effectiveness, predict risks, and build response plans to mitigate them. It also consists of the risk assessment matrix.
Risks are built in with any project, and project managers evaluate risks repeatedly and build plans to address them. The risk management plan consists of analysis of possible risks with both high and low impacts, and the mitigation strategies to facilitate the project and avoid being derailed through which the common problems arise. Risk management plans should be timely reviewed by the project team in order to avoid having the analysis become stale and not reflective of actual potential project risks. Most critically, risk management plans include a risk strategy for project execution.
Answer option A is incorrect. The project management plan is a comprehensive plan that communicates the intent of the project for all project management knowledge areas.
Answer option B is incorrect. The project plan is not an official PMBOK project management plan.
Answer option D is incorrect. The resource management plan defines the management of project resources, such as project team members, facilities, equipment, and contractors.
Reference: "Project Management Body of Knowledge (PMBOK Guide), Fourth Edition"