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Risk Management Plan
One of many types of plans that are developed by organizations to ensure responsible stewardship of their assets.

This plan provides a register of all the different types of risks facing the organization, their likelihood and their impact if they occur. The plan then develops a series of treatments to address each risk.

For example, Amiable Housing Society has a plan that identifies which risks are covered by insurance policy and which risks the organization will try to mitigate itself. 




Components of the Plan
Included below are the components of the risk management plan

A.  Framework
  • Risk Principles & Risk Policy
  • Risk Framework
  • Risk Philosophy
  • Risk Management Process
  • Risk Definitions
B.   Risk IdentificationC.  Risk Analysis (causes, likelihood, consequences)
  • Risk Equations
  • Consequences Matrix (CoF)
  • LIkelihood Matrix
  • Standardized Scoring System
  • Root Cause Categories
D. Risk Evaluation
  • Risk Appetite & Risk Tolerance
  • Risk Criteria
  • Correlations matrix)
E. Risk Treatment
  • Risk Mitigation Techniques (Avoid, Reduce, Retain, Share)
  • Risk monitoring & review (changes in risk over time)



Attributes of the Plan
Listed below are the primary attributes of an effective risk management plan.
  • It is aligned with the organizations policies and objectives
  • It is integrated with the other plans
  • It has the commitment of top management
  • It is realistic



The Plan in the Hierarchy
The organization's risk management plan occupies one of the central layers of the inspirational-and-aspirational hierarchy. 
Without an adequate risk management plan the organization will encounter difficulties when developing some of the other layers of the aspirational-inspirational hierarchy.



Process of Deveoping the RM Plan
Risk-based decision making is at the heart of asset management and this requires mindful consideration of the relationship between the probability of failure (PoF) and the consequences of failure (CoF). The complexities of these correlations can sometimes be captured on a risk matrix.
Fig. Risk-based decision making is at the heart of asset management and this requires mindful consideration of the relationship between the probability of failure (PoF) and the consequences of failure (CoF). The complexities of these correlations can sometimes be captured on a risk matrix.



The hierarchy of plans in ISO 550001 from OCP to SAMP to AMPs
Fig. The hierarchy of plans in ISO 550001 from OCP to SAMP to AMPs


Functional silos will defeat the organization. Rather, integration, collaboration and alignment are some of the critical success factors.
Fig. Functional silos will defeat the organization. Instead: integration, collaboration and alignment are some of the critical success factors.


Analyzing the words inside ISO 55000/55001 to reveal patterns in the requirements
Fig. Analyzing the approximate 27,0000 words inside ISO 55000/55001 to reveal patterns in the requirements.
Planning features prominently.



Planning must be iterative, dynamic and continuous. If it becomes static it starts to look more like an old dusty blueprint rather than a live roadmap
Fig. Planning must be iterative, dynamic and continuous. If it becomes static it starts to look more like an old dusty blueprint rather than a live roadmap.




The hierarchy of organizational purpose with goals represented as one of the layers
Fig. The hierarchy of organizational purpose with plans (including the risk management plan) represented as one of the layers.


Some organizations struggle with "paralysis through analysis" (and never feel comfortable to finalize a plan) and others who perhaps fail to "look before you leap" (start too quickly).
Fig. Some organizations struggle with "paralysis through analysis" (and never feel comfortable to finalize a plan) and others who perhaps fail to "look before you leap" (start too quickly).

See also:
  • Insurance
  • Stewardship
  • Reputation
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