The roles and responsibilities for various staff in regard to the risk management process The stakeholder’s responsibilities for key project on the risk management on the BP project are defined in individual terms of reference for every job role (Krane and Langlo, 2010). Project Sponsor Actively encouraging and supporting the implementation of a formal risk management process concerned with the project
4 RISK MANAGEMENT PLAN Monitoring and setting risk thresholds and making sure they are translated into acceptable levels of the project risks. Attendance at risk workshops, ownership of risks, and identification of risks. Reviewing the project risk outputs together with the project manager in ensuring effectiveness and consistency of the process. Reviewing the risks that are escalated by the project manager that are not in the scope or control of the project or which need input or action from outside the project. Taking decisions on project strategy in light of current risk status, in order to maintain acceptable the exposure of risks. Will ensure adequate resources are available to the project to respond to the risks that have been identified. Releasing funds to the project where justified in dealing with exceptional risks. Reporting regularly to the status of the risks of the senior management. Project Manager The project manager is responsible for the overall risk management process, and makes sure that the foreseeable risks are managed and identified proactively and effectively to maintain an acceptable level of risk exposure for the project. Determining the acceptable levels of project risk through consultation with the project sponsor. Approving the risk management plan that is prepared by the risk champion. Making sure that the process of risk management is promoted. Taking part in risk workshops, identifying and owning risks and reviewing meetings. Approving the risk plans responses and their associated risk actions before the implementation. Making sure that the project funds are applied to deal with the identified risks that occur in the project Overlooking at the risk management by suppliers and subcontractors Offering regular reporting to the risk status to the project sponsor and project committee, with other recommendations for appropriate strategic decisions and actions to maintain acceptable risk exposure (Hunter, 2008). Highlighting to the senior management for the identified risks that are outside the scope or control of the project, or the ones that require action or input from outside the project, or where the release of management reserve funds might be appropriate. Following on the effectiveness and efficiency of the process in connection with the risk champion.
5 RISK MANAGEMENT PLAN Risk Champion Has the overall responsibility to oversee and manage the risk management process Making sure that the risk management plan is prepared.
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