Project Management

Risk Management and Project Management Go Hand in Hand

Risk Management is Critical

Risk management is a critical matter that should be addressed by all project managers to ensure project success. That’s what the authors, Gary Hamilton, Gareth Byatt, and Jeff Hodgkinson, of this article believe. Effective risk management allows us to measure out uncertainties in a project in order to appropriately deal with the unexpected events if and when they happen.

When managing risks, here are a few points to consider:

  • Risks can be positive as well as negative.
  • Risk management affects your budget, schedule, scope, agreed level of quality, communications and stakeholders.
  • Risk management is a process that needs to be handled from the start of the project, constantly being discussed and monitored, involving all member of the project team.
  • As risks are identified, be sure to create a strategy on dealing with them, agreed upon by all appropriate parties, and tracked until closure.

The Groundwork

There are many guidelines and procedures for managing risk. The process below is a description from The Project Management Institute for managing project risks.

    1. Plan risk management.
    2. Identify risks.
    3. Perform qualitative risk analysis.
    4. Perform quantitative risk analysis.
    5. Plan risk responses.

<li>Monitor and control risks.

Unmanaged risks are the top causes of project failure, and therefore should be an imperative process of the project. A project manager understands the risks and the potential it has on the project. To conclude, keep in mind these wise words from the authors:

The key is to demonstrate positive behaviours in a way that ensures risk management is kept at the forefront of all your project activities. There is always the potential of ‘unknown unknowns’ impacting your project, but the more you can assess reasonable risks from the start of the project and actively manage them throughout, the better placed you will be as a team to realise a positive outcome for your project.

Remember Murphy’s Law. If anything can go wrong, it will.

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