The first step to reducing risk is to learn about reducing risk. In a whiteboard session on You Tube, Project Manger.com director Jennifer Wit makes the important topic of project risk control crystal clear. Her goal is to summarize the major points of project risk management and to put key concepts into perspective.
The Triple Constraint
The most central concept to project risk control is the triple constraint of the project plan document. As changes occur to the cost, time, and scope variables that surround a project’s quality, they allow the entry of project risk.
Step One: Identify
Wit lays it out in definitive steps. First, identify the risk – look at documents, scope, deliverables, requirements, costs, budgets, and schedules for dependencies and constraints. One must focus on the items most likely to impact quality and what kind of quality is needed. Are there outside factors or assumptions, environmental or organizational factors that will influence the project’s outcome?
More Steps: Document, Evaluate, Respond and Control
Next, log all issues into a risk register. Thorough documentation will allow for the evaluation of risk. One can make both a qualitative and quantitative analysis of risk. One must also assess the scale of the risk. Will it make a large or small impact on the project? The next step is to plan for and prioritize the documented risk. One can formulate a list of proposed risk responses for each. And finally, using the resources previously marshaled, one can track and control risks throughout the project.
Read the full article at: https://www.youtube.com/watch?v=uYHfTCdRrZA