Risk Management

7 Risk Management Mistakes That Can Cost Your Project Dearly

Every project comes with some inherent, unseen risks and managers require risk management to clear those up. However, they make evaluation mistakes that lead to project failure. Harry Hall discusses the 7 risk management mistakes that can cost your project dearly in this Project Risk Coach article.

Risking Project Risk Management

Teams discuss the risks they might face during the initial stages of a project. The managers are the lead drivers of this risk management. Following are the 7 risk management mistakes to avoid and save yourself the embarrassment of a project failure:

  1. Waiting for It to Happen: The project seemed very straightforward, so without any risk management plan, you start off the project. Risks are more at the initial stages of the project. They become more complex to handle as you go deeper into the project maze. Do not wait for it to happen. Predict and prepare for it.
  2. Not Evaluating Risks Every Step of the Way: Majority of the teams create a risk management plan but get too busy to update the risk register. Risks can change nature and newer risks can come up during the project journey. Always keep a sharp eye on the possibility of risks to mitigate them as early as possible.
  3. Not Identifying the Risk Zones: When you do not know where to look at, you are going to hunt risks forever. Ask for external help, if need be. Find out the risk zones and what you can do to prevent them from affecting other areas of your project.
  4. Marking Every Risk as Urgent: Missing the daily update meeting because of a super-busy schedule is a risk but can be compensated with an email. Not catching a bug in time is an important risk that you should not miss. Identify and mark those risks that have the potential to stop the project dead on its track, not all.
  5. Keeping the Stakeholders in the Dark: Some resources are being moved to another project soon. When you update the stakeholders close to their sign-off date, it can be risky. Come what may, you must always update the stakeholders what is going on with the project.
  6. Using the Same Risk Identification Method: Though brainstorming is a good way to create a risk management plan, having another angle helps. Along with the team members, run a survey with the stakeholders and use the Delphi technique to understand risks.
  7. Not Looking Beyond the Obvious: You have just identified all the internal risks and scanned all the high-risk areas. What about the ones that can pose a threat from outside? For internal risks, investigate the risks in the schedule, cost, and scope. For external risks, keep room for legal issues, natural calamities, international and home affairs, infrastructure downsizing, and brand liquidation.

To view the original article in full, visit the following link: http://projectriskcoach.com/things-not-to-do-when-identifying-project-risks/

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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