Negotiated Risk Agreement Template

A Negotiated Risk Agreement (NRA) is a critical document in project management and risk management. It outlines the specific risks that have been identified and agreed upon by all relevant stakeholders. This agreement details the strategies for mitigating, transferring, or accepting these risks.

Key Elements of a Negotiated Risk Agreement Template

A well-structured NRA template should include the following essential elements:

Project Identification

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Project Name: Clearly state the project’s name.

Project Manager: Specify the name and contact information of the project manager.

Project Sponsor: Indicate the name and contact information of the project sponsor.

Project Start and End Dates: Outline the project’s timeline.

Risk Identification and Assessment

Risk Register: Reference the project’s risk register, which should contain a comprehensive list of identified risks.

Risk Assessment Matrix: Detail the risk assessment matrix, which evaluates each risk’s likelihood and impact.

Prioritized Risks: Highlight the risks that have been prioritized for negotiation.

Risk Mitigation Strategies

Mitigation Actions: Specify the actions that will be taken to reduce the likelihood or impact of each risk.

Mitigation Responsibilities: Assign responsibility for implementing mitigation actions to specific individuals or teams.

Contingency Plans: Outline alternative plans to be executed if mitigation efforts fail.

Risk Transfer Strategies

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Insurance: Describe any insurance policies that will be purchased to transfer risk to an insurance provider.

Contractual Arrangements: Explain any contractual arrangements with third-party vendors or suppliers to transfer risk.

Risk Acceptance Strategies

Accepted Risks: Identify the risks that will be accepted, along with the rationale for acceptance.

Risk Tolerance Levels: Define the acceptable levels of risk for the project.

Monitoring and reporting

Risk Monitoring: Establish a process for regularly monitoring and tracking the identified risks.

Reporting Procedures: Specify how risk information will be communicated to stakeholders.

Risk Review meetings: Schedule regular meetings to review risk status and make necessary adjustments.

Signatures and Approvals

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Signatures: Include signature lines for all relevant stakeholders, such as the project manager, project sponsor, and key team members.

Date of Approval: Record the date on which the NRA is approved.

Design Elements for a Professional NRA Template

To create a professional and trustworthy NRA template, consider the following design elements:

Clear and Concise Language: Use clear and concise language to avoid confusion and ambiguity.

Consistent Formatting: Employ consistent formatting throughout the document, including fonts, font sizes, and spacing.

Professional Layout: Use a clean and professional layout, with ample white space to improve readability.

Headings and Subheadings: Utilize headings and subheadings to organize the content and make it easy to navigate.

Tables and Charts: Employ tables and charts to visually represent complex information, such as risk matrices and contingency plans.

Branding Elements: Incorporate your organization’s branding elements, such as your logo and color scheme, to strengthen your brand identity.

By carefully considering these elements, you can create an NRA template that is not only informative but also visually appealing and professional.