The benefits of risk management are vast, but for many projects this is an space still commonly overlooked. By making use of easy and consistent risk management methods we will easily minimise the impact of potential threats as well as leverage potential opportunities. This not only ensures meeting the agreed scope, price and time but additionally improves the overall health and effectivity of the project operation, team members and wider stakeholders. This article comes back to the basics on the key guidelines of managing risk, to ensure your projects are consistently delivered with full success.
Tip 1 – Implement a stable identification process
Sounds easy right. Nevertheless there are still many projects today which can be managed with completely no formal risk identification incorporated. Then there are others that think they are utilizing risk administration appropriately but aren’t applying the correct methods to establish risks. The identification process will depend upon the project, the organisation and the corporate culture involved. So it is finest to consider those areas when figuring out the most effective approach. This might be so simple as educating the team on what a risk really is and asking them periodically to evaluation the landscape for new risks. Or for giant projects the PMO might be leveraged to ensure risk identification is included in the drumbeat.
Tip 2 – Be positive
Risk administration includes figuring out and managing both negative risks and positive ones, but most projects typically appear to focus only on the negative ones. Ensure to add clear reminders and pointers within your risk administration process to consider positive risks. A deliverable being delivered well earlier than its due date could be a good thing, but also can have unforeseen impacts on other areas or go away the project operating inefficiently. However such a positive risk can actually assist to balance out the impact of negative risks in other areas.
Tip 3 – Prioritise for effectivity
All risks aren’t equal and there’s always limitations around how much resource might be applied to mitigate them. As such it is essential to classify risks in terms of ‘probability’ or how likely the risk is to occur and ‘impact’ level if the risk materialises into an issue. By doing so will enable the project manager and all team members to simply see which risks are priority to focus on. Use of a risk register template is a very efficient means of doing so. Most organisations would have a typical template for this or if not there are numerous that may be discovered online.
Tip four – Apply correct ownership
It is usually common for individuals within the project organisation to imagine that the project manager owns all risks but this is totally false. Risks can affect wide areas of the wider stakeholder group and it is typical that resources with the relevant knowledge or skills in that space are significantly better placed to turn into the owner of the risk and to hold out the appropriate mitigation actions.
Tip 5 – Talk and track to closure
With right identification, classification and owner allocation in place we should be careful as project managers that this just isn’t considered to be the ultimate step in the process of risk management. At this stage it is critical that the risks are appropriately communicated. Firstly to the owner assigned to handle the mitigation actions and secondly to the wider stakeholder group affected so they are aware of the risk and potential impact to their respective areas. Additionally it is then essential that the risks are frequently monitored and tracked by way of to closure concerning progress on mitigation actions and potentially changes to the impact / probability classifications as these actions come to fruition.
Summary
By following the above ideas, project managers will be well positioned to be in a position of management in relation to the management of risks for his or her projects and ultimately this will guarantee a sound foundation for the successful delivery of their work
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