Risk is an inherent property of every project. Even the most carefully planned projects can run into trouble. Also, traditional risk management tools are no longer sufficient. Therefore, you must develop an integrated approach to project risk management. In this article at Strategy Execution, Rick Graham provides some aspects of risk management that you must consider while implementing risk management techniques.
Aspects of Project Risk Management
Identify Risks Even If They are Beyond Project Scope
Firstly, brainstorm the risks associated with your project and discuss the same with the project’s key team members and stakeholders. Further, analyze all the factors that are essential for project completion and check with people about their concerns or potential problems. Additionally, check if any risks are related to requirements, technology, people, and budget.
Assess the likelihood of Project Risk and Its Impact
As you refine a project’s schedule, you must assess the risks that you have identified. Evaluating the likelihood of each risk will help you manage them if the worst happens. As you identify project risks, capture them in your risk register. For instance, you may use ‘high’, ‘medium’, ‘low’, or ‘often’, ‘sometimes’, ‘never’, ‘rarely’, and ‘always’ based on the likelihood of the risk. Use one place to store all the risk-related information.
Plan Your Risk Responses
The risk response planning is to determine the ways to eliminate or reduce any threats to the project. You must work towards eliminating the threats before they occur. As you cannot mitigate risks entirely, prepare a robust contingency plan, and a response plan, if contingencies fail to work.
Review the Risks Regularly
Set aside time to identify new risks and to monitor the progress of project. Risk management is a continuous process that must be attended to at all stages of projects’ lifecycles, not just at the beginning of the project.
Risk management is one of the most challenging aspects of managing projects. With a streamlined risk management process to predict the uncertainties in the projects, you can minimize the occurrence or the impact of risks. To learn more about the other aspects of project risk management, click on https://www.strategyex.co.uk/blog/pmoperspectives/7-aspects-project-risk/.