There are six practical steps to creating a risk management plan. This approach meets the essential requirements for drawing up a risk management plan. It covers assembling a team, identifying risks, assigning weight to the risks, proposing solutions, and assigning ownership for the particular risk. Early and timely identification and assessment of risks is the start of an effective project as a good project management plan reduces the threats and disturbances that a project might encounter. It is baseless to carry out a project if a risk management plan is not in place.