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Are You Doing These 7 Risk Management Mistakes?

Improper risk management can lead to project failure, notwithstanding the resultant cost burden. Project managers must go through every scenario to avoid any unseen risk turning into an irreversible issue during the project execution phase. In this article at Project Risk Coach, Harry Hall spells out the 7 risk management mistakes that you should avoid. He also later lists out a checklist for a better risk management.

The Black Hole of Risk Management

When project managers fail to identify risks, the project fails to reach its objective. Here are the 7 risk management mistakes you should not be doing to avoid project failure:

  1. Not Spending Time in Risk Evaluation: Instead of identifying or projecting risks, the majority of the project managers skip the step and start headlong with the project. However, when you know your risks, you are well prepared to handle them.
  2. Flagging Risk When It’s Red: When a project starts, you can find out hidden and open risks that are yet to mature into major issues. Sit down and find out these risks before they cause project delay and cost overrun.
  3. Skipping the Planning Part: It seems easier to start the project rather than set aside time for planning. Contrary to this belief, planning to achieve on a regular basis helps you to stay on schedule.
  4. Not Scanning the Whole Scape: Risk management is easier for small projects. For larger, more complex projects, you must be aware of every small risk and address it as soon as possible.
  5. No Buffer Zone: Clients like to receive faster project delivery, but they would prefer quality to quantity. Project managers should create some buffer in the budget and timeline to avoid overshooting any of them.
  6. Senior Management Ignoring Project Management: A project must align with the strategic goal of the company. This can be done through project management. Senior management must take the time to make the project blueprint.
  7. Losing Top Talents or Influencers: All projects are heavily dependent on the resources. Companies lose project when they do nothing to retain the top talents. Understand which resources are necessary for your project’s success.

Hall has created a checklist consisting of 7 items that you must check for risk management:

  1. Is there a risk management plan for the project?
  2. Do you regularly update the risk register?
  3. Which risks should you handle first?
  4. Are the right stakeholders assigned to evaluate and identify risks?
  5. Do the risks have risk owners?
  6. Have the risk owners chalked out a risk response plan?
  7. Are you regularly reviewing the risk register and risk response plans?

To view the original article in full, visit the following link: http://projectriskcoach.com/how-poor-risk-management-is-hurting-you/

Indrani Roy

Indrani Roy is currently working as a Content Specialist for CAI Info India. She has knowledge in writing blogs, product descriptions, brand information, and coming up with new marketing concepts. Indrani has also transcribed, subtitled, edited, and proofread various Hollywood movies, TV series, documentaries, etc., and performed audio fidelity checks. She started her career by articulating a knowledge base for an IT client, and, eventually, went on to create user manuals and generate content for a software dashboard. Writing being one of her passions, reading books is naturally her favorite pastime. When not lost in the world of letters, she is a foodie, movie buff, and a theater critic.

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