The benefits of risk management are vast, yet for many projects this is an area still commonly overlooked. By applying simple and consistent risk management techniques we can easily minimise the impact of potential threats as well as leverage potential opportunities. This not only ensures meeting the agreed scope, cost and time but also improves the overall health and efficiency of the project operation, team members and wider stakeholders. This article comes back to the basics on the key rules of managing risk, to ensure your projects are consistently delivered with full success.
Tip #1 – Implement a solid identification process
Sounds simple right. However there are still many projects today
that are managed with absolutely no formal risk identification
incorporated. Then there are others that think they are using risk
management appropriately but are not applying the correct techniques to
identify risks. The identification process will depend on the project,
the organisation and the company culture involved. So it is best to
consider those areas when determining the most effective approach. This
could be as simple as educating the team on what a risk actually is and
asking them periodically to review the landscape for new risks. Or for
large projects the PMO can be leveraged to ensure risk identification is
included in the drumbeat.
Tip #2 – Be positive
Risk management includes identifying and managing both negative
risks and positive ones, yet 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 before its due date can be a good thing, but also
can have unforeseen impacts on other areas or leave the project
operating inefficiently. On the other hand such a positive risk can
actually help to balance out the impact of negative risks in other
areas.
Tip #3 – Prioritise for efficiency
All risks are not equal and there is always limitations around how
much resource can 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 allow the project manager and all team members to easily
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 a standard template for this or if not there are many that can be
found online.
Tip #4 – Apply correct ownership
It is often common for people 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 relevant knowledge or skills in that
area are much better placed to become the owner of the risk and to
carry out the appropriate mitigation actions.
Tip #5 – Communicate and track to closure
With correct identification, classification and owner allocation in
place we need to be careful as project managers that this is not
considered to be the final step in the process of risk management. At
this stage it is critical that the risks are correctly 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 also then
essential that the risks are regularly monitored and tracked through to
closure regarding progress on mitigation actions and potentially
changes 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
By Adrian Wlas | Submitted On May 30, 2018