Risks are abundant in project management and if not properly mitigated, it can cause a lot of problems within the project life cycle. The Plan Risk Management is the process that defines how risk management activities should be conducted for the project.
The benefit of this project management process is that it ensures that the type, visibility, and degree of the risk management are equal with the risks and importance of the project. It is a vital process to communicate with the stakeholder as well as get support from them. Getting the support from the stakeholders is necessary so that the risk management process is performed efficiently all throughout the project life cycle.
This process requires different inputs like the project, charter, stakeholder register, project management plan, organizational process assets and the enterprise organizational factors. The Plan Risk Management process is also necessary for the development of the Risk Management Plan.
Careful planning is important as it increases the probability of success. It can provide project managers sufficient resources for risk management activities. Therefore, this process should start when the project is conceived but should be completed early during the planning and before the implementation.
This term is defined in the 5th edition of the PMBOK.