Managing project risks is a hard task but done right can give your projects benefits from unexpected quarters. You can act more swiftly and save costs. In this article at Project Smart, Bart Jutte talks about 10 sure-shot ways to manage project risks.
Project Risks: 10 Ways to Manage It
Following are the ways you can manage project risks:
- Integration in the Project Process: To manage project risks, integrate the risk management process. Some rely blindly on project managers instead of putting all heads together for risk identification.
- Early Detection: Detect project risks early by interacting with your team and by going through the data generated from similar projects. Team members and experts can sit together to figure out the problems. Old project plans, business cases, resource plans, intranet, and industry-specific websites can give valuable insights too.
- Communication: Project managers usually risk project failure when nobody intimates them about the impending risks. Keep your communication channels open and make risks the top priority in your meeting agenda with teams and sponsors.
- Turning Risk into Opportunities: Not all project risks are problematic. Analyze if you can turn risks into another project. Positive risks speed up your project, make it better, and turn beneficial instead.
- Vested Responsibilities: Once the risks are identified, assign a risk owner. This will reduce risks and increase opportunities. The way to increase engagement in project risks is making the risk owners pay.
- Risk Prioritization: Prioritize the critical risks. Upon identifying the important risks, go for the rest based on risk criteria. The usual criteria for the teams are the effect of the risks and the possibility of their occurrence.
- Risk Analysis: To respond well, know the nature of the project risks. Individually, you can understand the risks and their effects. Analyze their effects on the project in terms of cost, time, and quality. Another way is to find out the risk causes that occur before the risks appear. The third way is to simulate risks to demonstrate the effect to the sponsors.
- Responding to Risks: A risk response plan creates value as you take actions to mitigate the project risks. To stop threats from occurring, you can either avoid, minimize, or accept them. Changing suppliers, implementing a new technology, or stopping a project can be your risk responses.
- Risk Register: A risk register helps to remember the pending risks and stay updated about their progress. Sponsors, stakeholders, and team members remain on the same page. To maintain a good risk register, include descriptions, ownership, and analysis details. Logging the risks lets the team know about your actions. So, you are in the clear even if the project fails.
- Tracking: Once you have started entering the project risks in the register, track their progress easily. Make it your daily habit to check on the progress to respond on time.
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