The benefits of risk management are vast, but for a lot of projects this is an space still commonly overlooked. By applying simple and consistent risk management methods we will 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 in addition 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 rules of managing risk, to make sure your projects are persistently delivered with full success.
Tip 1 – Implement a solid identification process
Sounds simple right. Nevertheless there are still many projects at present that are managed with completely no formal risk identification incorporated. Then there are others that think they are using risk management appropriately but are usually not applying the correct strategies to determine risks. The identification process will depend upon the project, the organisation and the corporate tradition involved. So it is greatest to consider those areas when determining the best approach. This could be as simple as educating the workforce on what a risk actually is and asking them periodically to assessment the landscape for new risks. Or for giant projects the PMO will be leveraged to ensure risk identification is included within the drumbeat.
Tip 2 – Be positive
Risk administration consists of figuring out and managing each negative risks and positive ones, but most projects typically seem to focus only on the negative ones. Ensure to add clear reminders and pointers within your risk management process to consider positive risks. A deliverable being delivered well earlier than its due date could be a good thing, but in addition can have unforeseen impacts on different areas or leave the project working inefficiently. Alternatively such a positive risk can truly assist to balance out the impact of negative risks in different areas.
Tip three – Prioritise for effectivity
All risks usually are not equal and there may be always limitations round how a lot resource may be applied to mitigate them. As such it is essential to categorise 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 crew members to simply see which risks are priority to focus on. Use of a risk register template is a really effective technique of doing so. Most organisations would have a normal template for this or if not there are lots of that may be found online.
Tip four – Apply appropriate ownership
It is usually common for individuals within the project organisation to imagine 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 space are significantly better positioned to turn out to be 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 have to 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 appropriately communicated. Firstly to the owner assigned to handle 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 is usually then essential that the risks are recurrently monitored and tracked by means of to closure relating to progress on mitigation actions and probably modifications 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 administration of risks for their projects and in the end this will guarantee a sound foundation for the successful delivery of their work
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