What should a risk management plan primarily address?

A risk management plan is fundamentally designed to identify and address potential risks that could affect an organization or project. Its primary focus is on determining how to mitigate risks that have already been identified through a thorough risk assessment process. This involves developing strategies and actions to reduce the likelihood of risks occurring and minimizing their impact should they occur, thereby enhancing the overall resilience of the organization.

While identifying opportunities for growth, establishing budgets for new projects, and creating marketing strategies are important elements of business planning and strategy, they do not constitute the primary objectives of a risk management plan. The essence of such a plan is to proactively manage and respond to uncertainties that could disrupt an organization’s goals and operations. By concentrating on risk mitigation, a risk management plan ensures that resources are allocated effectively to protect the organization from potential negative outcomes.