Risk Management

Why You Must Take Risk Management Seriously

Improper risk management can lead to project failure, but project managers often let go of it after initial enthusiasm. Sure, there is a risk log, and people are still filling it for the keepsake. Teams perform risk assessments as part of the procedure but not as something that could save them for project derailment. In this article at the Association for Project Management, Mike Wild shares why you must take risk management seriously.

Working on Risk Management

You cannot include or log all risks because mitigating risks costs money and employee hours. If you are unsure whether to report the risk or not, ask yourself if logging would save the team from future problems. Sometimes, you can be overruled by your team members because risk response is, after all, a group decision. So, how do you make the team perform effective risk management procedure? Here are the questions you should pose:

  • Do critical stakeholders talk about risks and managing them during project meetings?
  • How responsible are they in handling these risks?
  • Do they know how to recognize risks?

Are You Active Enough?

Comments like ‘poor customer experience’ and ‘potential cost increases’ in the risk log are vague. The risk owner must have to delve deeper to understand the intensity of the risks in a short time. So, follow these steps for an active risk management process:

  • Discover risks as you progress in the project life cycle.
  • Once you have adequately addressed the risks entirely, add the closure details.
  • You are ready to modify risk assessment procedures if the changes help you solve problems better.

Speaker and writer Lev Virine adequately explains risk management in his conference paper as below:

‘Remember that the main ideas of risk and decision analysis are:

  • identify risks which may affect your projects;
  • analyse your project and determine the risks that would have the most effect on your project;
  • determine workable project alternatives;
  • identify which alternative will bring the most value; and
  • select a course of action and monitor during execution.’

To view the original article in full, visit the following link: https://www.apm.org.uk/blog/risk-management-are-you-keeping-up-appearances/

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