The SMEs can be executives from an outside perspective looking in the project. All the identified risks are detailed down into the Risk Register and a level is attached to each risk put down. These levels are based on the likely occurrence of the risk in the due course of the project life cycle and its seriousness. The risk register contains the following information about each risk associated with the project and goes through the all the phases of project risk management:.
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Risks should be analyzed and evaluated considering the following 2 criteria:. Project managers are urged to rate each risk listed into the risk register on the scale of low, moderate, and high likely occurrence rate and low, moderate, and high seriousness of impact rate.
So what is PMBOK?
They can create a matrix to chart out these evaluations so as to gain a wholesome idea about the risks and their influence on the project. This grading and rating on matrices can be later used to prioritize the different types of risks and enable the project manager to put measures in place within the project risk management plan.
The grades assigned to the project risks can be either in grades or numerical ratings as deemed comfortable by the project team and organization. Broadly divide your team into subgroups that will take care of each risk, should they occur as you have predicted them to be. These subgroups will have to study their risks in a deeper sense and recognize the triggers for these risks and signs of warning, which can tell the project team that their project is running into danger.
Tip : As a standard practice, document 3 triggers for each risk allotted in the risk register. At this stage, the project manager can determine the roles and responsibilities that each team and the team members take up when faced with a risk scenario. Authoritative power is given to individuals to manage and settle the budgets for each risk and they are responsible for coming up with ideas and a plan for those ideas, with the project manager in tow.
Roles and responsibilities can be distributed based on the department, working title, or expertise of the individual or team.
Risk Management Fundamentals
Try and include all project stakeholders as well to gain their insight and expertise on the project risk management plan. These individuals can even highly contribute to identification of these risk triggers that can be enlisted later on in the project risk management plan. Each team now takes up their risks and brainstorms into ideas that subdue the threats.
These should be preventive measures or contingency plans taken by the team at the start of the project, to decrease or eliminate the effects these risks have on the completion of the project. The team should think about tapping the opportunities that come their way, as mentioned in the project plan in the planning phase of the project life cycle. Opportunities are most often the positive risks in the project and, more so often, these opportunities can in fact neutralize the negative risks that we focus on.
Project managers should urge the project risk management team, through ways of the project risk management plan, to pay close attention to even the opportunities to mitigate risks.
Based on the collective ideas that comes from the various departments and minds that have worked on it, the project manager then needs to make a decision as to frame a plan of action POA for the solutions. This is what we will discuss in the next step, which is the Creating a Plan! The risks are identified, the possible solutions or measures are taken into account, what is left to create is an action plan for these. This action plan is the fundamental unit of the project risk management plan, and for a project manager owning this plan, they will need to document all the possible solutions to all the different risks identified across the project.
These plans are basically risk mitigation strategies in ploy to keep the risks at bay.
4. Framework for Project Management
These risk mitigation strategies will either reduce the chances of the risk being accomplished or will reduce the impact of the risk at hand. These risk mitigation strategies are born out of the ideas belted out the brainstorming session held. There are two types of mitigation strategies. The risks that are at the highest priority will need to be attended to first by the project manager and their mitigation plans need to be realized before the project starts, or as per the action plan.
The risks with a lower priority can be taken care of later, but cannot be ignored or neglected. While the project proceeds as per the project plan, alongside runs the project risk management plan, taking care of all the risks that the project might encounter on its way to completion.
Consider the review period to be fortnightly. But why monitor and review? As the project progresses, there is a fair chance that the project might encounter or realize many more risks or the risks slated in the register may need a change. Project risk management is an iterative process and should be seamlessly woven into the management of your entire project.
It should be closely integrated to the issue management framework because unresolved issues slowly succeed to become potential risks. Verifiable Certificate of Completion. You will then be better prepared to deal with it if you have to any risks that could not be anticipated are, of course, another matter. And one other point: risk management can and does help ensure more successful projects and it should be an integral part of the project management process but it should not be so large a task that the effort expended is out of all proportion to the size of the project or the potential impact of the risks.
Finally make sure the responses are implemented, without following through on the risk reduction measures then the risk management process will add little value overall. This is a project management fundamentals blog written and sponsored by Parallel Project Training. Posted by Paul Naybour on 17th Feb Forgotten your password? Forgotten your Corporate Partner username? Username is required Password is required. If this is your first visit to our new website launched December please click here to set a new password and access your account.
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