During a meeting to develop the risk management plan, the risk manager recognizes that risks may be identified that could also impact other projects that the company is pursuing. What should the risk manager do?
During a meeting to develop the risk management plan, the risk manager recognizes that risks may be identified that could also impact other projects that the company is pursuing. What should the risk manager do?
When developing a risk management plan, it is essential to have a structured approach to managing risks that potentially impact other projects. Including an escalation process in the risk management plan ensures that there is a formalized and documented method for addressing such risks. This allows for efficient and effective communication and handling of risks that extend beyond the scope of the individual project, ensuring that they are managed at the appropriate level within the organization.
Escalation is appropriate when the project team or the project sponsor agrees that a threat is outside the scope of the project or that the proposed response would exceed the project manager’s authority. Escalated risks are managed at the program level, portfolio level, or other relevant parts of the organization, and not at the project level. The project manager determines who should be notified about the threat and communicates the details to that person or part of the organization. It is important that ownership of escalated threats is accepted by the relevant party in the organization. Threats are usually escalated to the level that matches the objectives that would be affected if the threat occurred. Escalated threats are not monitored further by the project team after escalation, although they may be recorded in the risk register for information. PMBOK6 Page# 442.
Correct answer should be 'C' The risk management plan includes the tailored risk management processes, which are based on the process maturity of the organization. Scalable elements of the process that are a part of risk management planning include, but are not limited to: Available resources, Escalation paths, Methodology and processes used, Tools and techniques used, Supporting infrastructure, Review and update frequency, Reporting requirements. The reference is the standard for risk management in portfolios, programs, and projects page#31.
Escalation process includes also communication. The difference lies in formalized procedure or not of doing it. You just can inform other risk managers or create a formal escalation process where it is documented how to approach to this kind of situations; and then, do the escalation = inform.