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Developing a Risk Management Plan

It is important to integrate risk management within existing planning processes such as policy development, business and strategic planning and change management planning. It is equally important to incorporate risk management into plans and processes for areas such as asset management, audit, business continuity, security management, environmental management, fraud control, human resources, investment and project management.

For larger organisations it is likely separate risk management plans will be necessary for particular areas, projects, activities and or processes. All such risk management sub-plans should be consistent with the corporate risk management plan and risk management policy and avoid duplication, where possible.

The roles and responsibilities for risk management are appropriately defined in the risk management plan and may include assignment of accountability for particular categories of risk, implementation of risk treatment strategies and controls and establishing risk management performance measures and reporting processes. Directors and senior executives are ultimately accountable and responsible for managing risk across the organisation and ensuring effective implementation of the risk management policy and risk management plan. All other personnel are responsible for managing risks in their own areas of control.

The risk management plan may outline the level of resources and associated infrastructure for the effective management of risks. Resources and infrastructure may be required for the following risk management activities:

1. Providing support to staff responsible for managing risk, including where required engagement of external risk management consultants.
2. Acquiring the knowledge and skills needed to manage risk.
3. Including risk management training into staff development programmes.
4. Incorporating risk management principles into existing processes, procedures and practices.
5. Communications plan to coordinate delivery of risk management dialogue throughout the organisation.
6. Inclusion of risk management into the systems for staff rewards, recognition and sanctions.
7. Ensuring that internal review and evaluation programmes, such as internal audit is based upon the business risk profile and risk management imperatives when evaluating performance.
8. Incorporation of risk management issues within business planning processes.
9. Coordinating the interface between risk management and quality assurance.
10. Establishment of risk management information systems and databases.

Implementing Risk Management Plans and Risk Policy

An awareness of and commitment to risk management at all levels within the organisation is critical to the effective implementation of the risk management plan and policy. Read more on implementation of your risk plan and risk policy...