8. RISK MANAGEMENT
Project Name: [Your Project Name]
Owner/Lead: [Your Name]
Created: [MM/DD/YYYY]
Status: [Planning / In Progress / On Hold / Completed]
Overview
This document identifies, assesses, and mitigates risks that could impact project success. It provides a comprehensive risk register, mitigation strategies, and contingency plans.
Connections: Uses Sections 1, 3, 4, 5, 6; Feeds into Sections 8 (Execution), 11 (Governance)
Risk Register
Technical Risks
| Risk ID | Risk Description | Probability | Impact | Risk Level | Owner | Mitigation Strategy | Contingency Plan |
|---|---|---|---|---|---|---|---|
| T-001 | Third-party API downtime | Medium | High | High | [Name] | Implement retry logic, caching, fallback APIs | Use backup API provider |
| T-002 | Performance bottlenecks | Medium | Medium | Medium | [Name] | Load testing, performance monitoring | Scale infrastructure, optimize code |
| T-003 | Security vulnerabilities | Low | Critical | High | [Name] | Regular security audits, automated scanning | Incident response plan |
| T-004 | Database scalability issues | Low | High | Medium | [Name] | Design for scale, load testing | Database sharding, read replicas |
| T-005 | Integration failures | Medium | High | High | [Name] | Comprehensive integration testing | Staged rollout, feature flags |
| T-006 | Technology stack limitations | Low | Medium | Low | [Name] | Proof of concept, research | Alternative technology evaluation |
Organizational Risks
| Risk ID | Risk Description | Probability | Impact | Risk Level | Owner | Mitigation Strategy | Contingency Plan |
|---|---|---|---|---|---|---|---|
| O-001 | Key team member departure | Low | High | Medium | [Name] | Knowledge sharing, documentation | Cross-training, backup resources |
| O-002 | Scope creep | High | Medium | High | [Name] | Change control process, prioritization | Scope reduction, timeline extension |
| O-003 | Budget overrun | Medium | High | High | [Name] | Regular budget reviews, cost tracking | Scope reduction, additional funding |
| O-004 | Timeline delays | Medium | High | High | [Name] | Buffer time, regular monitoring | Scope reduction, resource increase |
| O-005 | Communication breakdown | Low | Medium | Low | [Name] | Regular meetings, clear channels | Escalation process |
| O-006 | Skill gaps | Medium | Medium | Medium | [Name] | Training, hiring, contractors | External consultants |
Market/External Risks
| Risk ID | Risk Description | Probability | Impact | Risk Level | Owner | Mitigation Strategy | Contingency Plan |
|---|---|---|---|---|---|---|---|
| M-001 | Regulatory changes | Low | High | Medium | [Name] | Monitor regulations, legal review | Compliance adjustments |
| M-002 | Competitive pressure | Medium | Medium | Medium | [Name] | Market research, differentiation | Accelerate features, pivot |
| M-003 | Economic downturn | Low | High | Low | [Name] | Cost optimization, flexible pricing | Reduce costs, extend runway |
| M-004 | Vendor/service failure | Low | High | Medium | [Name] | Backup vendors, SLAs | Switch to alternative vendor |
Project-Specific Risks
| Risk ID | Risk Description | Probability | Impact | Risk Level | Owner | Mitigation Strategy | Contingency Plan |
|---|---|---|---|---|---|---|---|
| P-001 | [Project-specific risk] | [Low/Med/High] | [Low/Med/High] | [Level] | [Name] | [Strategy] | [Plan] |
| P-002 | [Project-specific risk] | [Low/Med/High] | [Low/Med/High] | [Level] | [Name] | [Strategy] | [Plan] |
Risk Heat Map
HIGH IMPACT
│
│ T-003 O-003
│ O-004 T-001
│ T-005
│
MEDIUM ─────┼───────────────
IMPACT │ T-002 O-001
│ T-004 O-002
│ M-001 O-006
│ M-002 M-004
│
LOW │ T-006 O-005
IMPACT M-003
│
└───────────────────────
LOW MEDIUM HIGH
PROBABILITY
Top 10 Risks (Prioritized)
- O-003: Budget Overrun - High probability, High impact
- O-004: Timeline Delays - Medium probability, High impact
- T-001: Third-party API Downtime - Medium probability, High impact
- O-002: Scope Creep - High probability, Medium impact
- T-005: Integration Failures - Medium probability, High impact
- T-003: Security Vulnerabilities - Low probability, Critical impact
- O-001: Key Team Member Departure - Low probability, High impact
- T-002: Performance Bottlenecks - Medium probability, Medium impact
- M-002: Competitive Pressure - Medium probability, Medium impact
- O-006: Skill Gaps - Medium probability, Medium impact
Mitigation Strategies by Category
Technical Risk Mitigation
Performance:
- Load testing before launch
- Performance monitoring in production
- Caching strategies
- Database query optimization
- CDN for static assets
Security:
- Regular security audits (quarterly)
- Automated vulnerability scanning
- Code review for security
- Penetration testing before launch
- Incident response plan
Reliability:
- Comprehensive testing (unit, integration, e2e)
- Staged rollouts
- Feature flags
- Monitoring and alerting
- Backup and disaster recovery
Organizational Risk Mitigation
Team:
- Knowledge sharing sessions
- Comprehensive documentation
- Cross-training
- Regular one-on-ones
- Competitive retention packages
Scope:
- Clear change control process
- Regular scope reviews
- Prioritization framework
- Stakeholder alignment
- Phase gate reviews
Budget:
- Regular budget reviews (weekly)
- Cost tracking dashboard
- Approval process for expenses
- Contingency buffer (15-20%)
- Vendor negotiations
Market Risk Mitigation
Regulatory:
- Legal review of requirements
- Compliance checklist
- Regular regulatory monitoring
- Compliance testing
Competitive:
- Market research
- Competitive analysis
- Unique value proposition
- Rapid iteration capability
Contingency Plans
High-Priority Contingencies
Budget Overrun:
- Identify non-critical features to defer
- Negotiate vendor discounts
- Request additional funding
- Reduce team size (last resort)
Timeline Delays:
- Identify critical path tasks
- Add resources to critical tasks
- Reduce scope of non-critical features
- Extend timeline with stakeholder approval
Key Team Member Departure:
- Immediate knowledge transfer
- Assign backup owner
- Hire replacement quickly
- Use contractors temporarily
Security Breach:
- Activate incident response plan
- Isolate affected systems
- Notify stakeholders
- Conduct post-mortem
- Implement additional security measures
Risk Monitoring
Monthly Risk Review Process
Schedule: First Monday of each month
Participants: Project Lead, Technical Lead, Risk Owners
Duration: 1 hour
Agenda:
- Review all active risks
- Assess probability and impact changes
- Review mitigation progress
- Identify new risks
- Update risk register
- Communicate to stakeholders
Risk Dashboard Metrics
- Total risks: [X]
- High-priority risks: [X]
- Risks with mitigation in progress: [X]
- New risks this month: [X]
- Closed risks this month: [X]
Risk Escalation
Level 1: Team Level
- Owner manages risk
- Documented in risk register
- Mitigation in progress
Level 2: Project Lead
- Risk impacts timeline or budget
- Requires additional resources
- Project Lead coordinates response
Level 3: Steering Committee
- Risk threatens project success
- Requires strategic decision
- Budget or scope changes needed
Escalation Criteria:
- Risk level increases to High
- Mitigation not working
- Impact exceeds threshold
- Multiple risks compound
Success Criteria
Risk Management Success:
- All high-priority risks have mitigation plans
- Monthly risk reviews conducted
- No unmitigated critical risks
- Risk register updated weekly
- Contingency plans tested
Last Updated: [Date]
Next Review: [Date]
Owner: [Name]