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5 Risk Management Processes and How to Improve Them

Project managers are in an important spot when it comes to risk management. They can talk as big as they want, but at the end of the day the results are what do the most talking. But sometimes the desired outcome isn’t achieved. What do you do in that situation? Simple: go back to basics and see what you can improve. In a post at the Project Risk Coach, Harry Hall outlines five risk management processes and how to improve on each one:

  1. Plan risk management
  2. Identify risks
  3. Evaluate the risks
  4. Develop the risk response plans
  5. Monitor your risks

Processes to Progress

The planning portion of risk management should be limited to the size and scope of a project. Some plans will be a page; others will be many. Either way, gathering input from the team is a great way to increase investment and create a more comprehensive plan. When identifying these risks, use a couple different techniques (like brainstorming and surveys) to cover your bases.

Regarding the evaluation of risks, there is a procedural way of doing risk analysis to decide which risks have more weight on the project than others:

How do we know which risks matter? Start with a quick and easy qualitative risk analysis. In a spreadsheet, you can rate the probability and impact of each risk on a scale of 1 to 5 with 5 being the highest. Multiply the probability times the impact to get a risk score (e.g., 4 x 5 = 20). Lastly sort your risks in descending order by the risk score, moving your highest risks to the top of your list.

Then you are ready to make a risk response plan. Establish risk owners to help in the creation of the plan, according to their expertise. Regularly meeting with the team to monitor these risks and updating the registry accordingly is a great way to keep everything in check.

For more thoughts, you can view the original post here:

About Austin J. Gruver

Austin is a Staff Writer for AITS. He has a background in professional writing from York College.

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