The benefits of risk administration are huge, but for many projects this is an space still commonly overlooked. By applying simple and constant risk management strategies we will simply minimise the impact of potential threats as well as leverage potential opportunities. This not only ensures meeting the agreed scope, value and time but also improves the general health and effectivity of the project operation, team members and wider stakeholders. This article comes back to the fundamentals on the key rules of managing risk, to ensure your projects are consistently delivered with full success.
Tip 1 – Implement a strong identification process
Sounds simple right. However there are still many projects at this time which can be managed with absolutely no formal risk identification incorporated. Then there are others that think they are utilizing risk management appropriately however usually are not applying the correct methods to identify 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 determining the most effective approach. This could possibly be as simple as educating the staff on what a risk actually is and asking them periodically to evaluation the panorama for new risks. Or for large projects the PMO might be leveraged to ensure risk identification is included within the drumbeat.
Tip 2 – Be positive
Risk administration includes identifying and managing each negative risks and positive ones, yet 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 before its due date could be a good thing, but also can have unforeseen impacts on other areas or leave the project working inefficiently. Then again such a positive risk can actually assist to balance out the impact of negative risks in different areas.
Tip three – Prioritise for efficiency
All risks aren’t equal and there’s always limitations around how a lot resource may be applied to mitigate them. As such it is essential to categorise risks by way of ‘probability’ or how likely the risk is to occur and ‘impact’ level if the risk materialises into an issue. By doing so will permit the project manager and all staff members to simply see which risks are priority to focus on. Use of a risk register template is a really efficient technique of doing so. Most organisations would have a standard template for this or if not there are lots of that can be discovered online.
Tip four – Apply correct ownership
It is often frequent for folks within the project organisation to assume that the project manager owns all risks but this is completely false. Risks can affect wide areas of the wider stakeholder group and it is typical that resources with the related knowledge or skills in that area are significantly better placed to change into the owner of the risk and to carry 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 is just not considered to be the ultimate step in the process of risk management. At this stage it is critical that the risks are accurately communicated. Firstly to the owner assigned to manage 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. It is usually then essential that the risks are frequently monitored and tracked by way of to closure regarding progress on mitigation actions and doubtlessly adjustments to the impact / probability classifications as those actions come to fruition.
Abstract
By following the above tips, project managers will be well placed to be in a position of control in relation to the management of risks for their projects and in the end this will guarantee a sound basis for the profitable delivery of their work
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