A project is always going to have risks. It is how you manage them that really makes the difference. Below, we are going to take a look at four tips on project risk management. This advice should help you to get any risks under control so they do not derail your project.
Review risks on a regular basis
It is important to make sure that the risks are reviewed on a regular basis by the team and the project manager. You cannot simply identify risks at the beginning of the project and then set them in stone – things can change. When you review the risks, you are looking to make sure that all of the components are up to date, including the triggers and the mitigation plans, and that the risks are still relevant to the project.
The importance of communicating effectively in regards to project risk management cannot be stressed enough. Discussions about project risks and opportunity need to be a part of your regular team meetings, as this will make sure that risks continue to be identified and that they are communicated effectively with the rest of the team. By encouraging open communication, you will ensure that the project manager has improved information, allowing them to then report to those higher up regarding the status of the project and any risks. A small risk could be the catalyst for a bigger problem, which is why they should never be handled independently.
Assert what will happen if a risk manifests
It is important to make your team aware of what will occur if a risk is allowed to come to fruition. For example, if ‘A’ happens, then ‘B’ will arise – ‘A’ is the potential risk, and ‘B’ is the likely outcome of the risk, for example, a delay or the inability to reach a target.
Identify risk triggers
Not only do you need to identify the potential risks associated with a project, but you also need to be aware of the conditions, i.e. risk triggers, that could cause the risk to occur and thus the need for the mitigation plan to be put into action. If you do not establish risk triggers, it is going to take too long for a response to be executed. Make sure all trigger events can be measured quantitatively and that they are specific. By doing this, you will also find that any challenging conversations about invoking the mitigation plan or the risk are facilitated.
As you can see, there is a lot that needs to be considered when it comes to project risk management. However, if you can adapt some of the approaches mentioned above, you can ensure that risk is mitigated so that your project does not take an unexpected and costly turn for the worse. A lot of project management training courses, including the likes of PMP and the APM introductory course, will focus on risk management. So taking one of these is advised.