The benefits of risk management are huge, yet for a lot of projects this is an area still commonly overlooked. By making use of easy and constant risk management strategies we are able to simply minimise the impact of potential threats as well as leverage potential opportunities. This not only ensures meeting the agreed scope, price and time but also improves the overall health and effectivity of the project operation, crew members and wider stakeholders. This article comes back to the basics on the key guidelines of managing risk, to ensure your projects are persistently delivered with full success.
Tip 1 – Implement a solid identification process
Sounds simple right. Nevertheless there are still many projects right now that are managed with completely no formal risk identification incorporated. Then there are others that think they’re utilizing risk administration appropriately but are usually not applying the right strategies to establish risks. The identification process will depend upon the project, the organisation and the company culture involved. So it is greatest to consider those areas when figuring out the most effective approach. This could be so simple as educating the team on what a risk really is and asking them periodically to assessment the landscape 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, yet most projects typically seem 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 generally is a good thing, but additionally can have unforeseen impacts on other areas or go away the project operating inefficiently. Then again such a positive risk can actually help to balance out the impact of negative risks in other areas.
Tip three – Prioritise for efficiency
All risks are not equal and there is always limitations around how a lot resource might be utilized 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 staff members to simply see which risks are priority to focus on. Use of a risk register template is a very efficient technique of doing so. Most organisations would have a typical template for this or if not there are lots of that may be found online.
Tip four – Apply correct ownership
It is often widespread for folks within the project organisation to assume that the project manager owns all risks however 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 space are significantly better positioned to develop into the owner of the risk and to carry 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 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. It is also then essential that the risks are recurrently monitored and tracked by way of to closure regarding progress on mitigation actions and potentially changes to the impact / probability classifications as those actions come to fruition.
Abstract
By following the above ideas, project managers will be well placed to be in a position of management in relation to the administration of risks for his or her projects and in the end this will guarantee a sound basis for the successful delivery of their work
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