The benefits of risk management are vast, but for a lot of projects this is an area still commonly overlooked. By applying simple and consistent risk management techniques we will easily minimise the impact of potential threats as well as leverage potential opportunities. This not only ensures assembly the agreed scope, price and time but also improves the overall health and efficiency of the project operation, crew members and wider stakeholders. This article comes back to the fundamentals on the key rules of managing risk, to ensure your projects are persistently delivered with full success.
Tip 1 – Implement a stable identification process
Sounds simple right. However there are still many projects today which can be managed with absolutely no formal risk identification incorporated. Then there are others that think they’re using risk administration appropriately but usually are not making use of the proper methods to identify risks. The identification process will depend upon the project, the organisation and the company culture involved. So it is finest to consider those areas when determining the simplest approach. This could be so simple as educating the workforce on what a risk truly is and asking them periodically to review the panorama for new risks. Or for large projects the PMO might be leveraged to make sure risk identification is included in the drumbeat.
Tip 2 – Be positive
Risk administration consists of figuring out and managing each negative risks and positive ones, but most projects typically appear to focus only on the negative ones. Guarantee 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 can be a good thing, but in addition can have unexpected impacts on other areas or leave the project working inefficiently. On the other hand such a positive risk can actually assist to balance out the impact of negative risks in other areas.
Tip 3 – Prioritise for efficiency
All risks should not equal and there is always limitations round 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 permit the project manager and all workforce members to simply see which risks are priority to focus on. Use of a risk register template is a very effective means of doing so. Most organisations would have an ordinary template for this or if not there are lots of that can be found online.
Tip 4 – Apply correct ownership
It is usually frequent for folks within the project organisation to assume that the project manager owns all risks but this is totally false. Risks can have an effect on wide areas of the wider stakeholder group and it is typical that resources with the relevant knowledge or skills in that area are a lot better placed to grow to be the owner of the risk and to hold out the appropriate mitigation actions.
Tip 5 – Talk and track to closure
With correct identification, classification and owner allocation in place we need to be careful as project managers that this shouldn’t be 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 manage the mitigation actions and secondly to the wider stakeholder group affected so they’re aware of the risk and potential impact to their respective areas. It’s also then essential that the risks are recurrently monitored and tracked through to closure regarding progress on mitigation actions and potentially adjustments to the impact / probability classifications as those actions come to fruition.
Summary
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 ultimately this will ensure a sound foundation for the successful delivery of their work
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