RISK MANAGEMENT METHODOLOGY – RAMP

Activity A: Analysis and project launch
Define risk strategy.
Appoint a risk analyst or problem owner.
Outline the objectives and investment project scope.
Estimate people and skills required, investment complexity, budget and timetable.
Establish an investment project plan with baselines.
Estimate the “most likely” outcome, plus alternative pessimistic scenario.
Activity B: Risk review
Identify project risks, both likely and unlikely.
Analyse risks and their frequency plus probable impact.
Generate mitigation options and discuss them briefly.
Create a risk matrix applicable to this project (cf. Basel II Loss Database).
Consult a Delphi group of experts familiar with similar projects.
Spotlight risks needing deeper scenario analysis and mitigation measures.
Pick cost-effective mitigation for each risk.
Define plan for each mitigation option.
Devise actions for handling residual risks.
Check risk measures with third parties.
Plan financing of the risk management measures.
Get approval for commencing the risk management project with key stakeholders.
Activity C: Risk management
Implement the risk management plan.
Check that risk management plan is compatible with current management processes.
Check that contracts, financing and insurance are compatible.
Confirm that that the risk management plan is properly staffed, resourced and funded for
successful implementation.
Monitor the expected plan results against realised.
Monitor changing market conditions and the extent of risks present.
Revise plan actions where necessary.
Evaluate whether the investment project should continue.
Activity D: Project close down
Summarise the risk events with impact in relation to risks predicted.
Pick out the residual risks and risks unforeseen.
Conclude how successful the project was in financial and risk management terms.
Close down the project with a report for key stakeholders.
Putting this into the RAMP context we can derive a risk management project plan.