5 tips for managing risk in projects
One of the frequently unspoken facts about projects are that they are riddled with risks. Accordingly, it is crucial that they be identified and managed in order to limit the damage they can cause to a project, which can range from requiring minor adjustments to be made, to the project having to be abandoned. Below are five tips that can help you get in front of those challenges.
1. Identify the risks as early as possible
In order to be prepared, and positioned to be proactive, try to identify as many risks as early as possible. It is recommended that a comprehensive list be made, and consultations be held with key stakeholders and resources to ensure that the list is as complete as possible. It should be noted that some of the risks should have been identified when responding to the tender or bid request; as frequently, it is highly beneficial to communicate how you and your team would manage some of the anticipated challenges.
2. Ensure all of the project team is involved
Although the project lead or project manager may have ultimate responsibility for risk management, all project team members should be aware of the risks, as their actions and omissions could exacerbate, or aid, a situation. The key to managing risk is being able to be proactive and strategic, which tends to be more likely to occur when there is a keen spirit of collaboration and collective responsibility among the project team to provide early warning of imminent challenges, and so limit the possible fallout.
3. Analyse and prioritise the risks
All risks are not created equal. A distinction could be made between those that could have major or significant consequences if they occur, along with the probability of a particular risk occurring in the first place. The analysis and prioritisation of all the risks compiled is crucial. However, a project does not exist in a vacuum. It is continually evolving, and correspondingly, the risks are also changing. As a result, it is recommended that the identified risks are regularly re-analysed and re-prioritised as needed, to ensure that they properly reflect the (current) challenges and threats to the project.
4. Develop and implement risk management strategy
In being proactive, it is possible to mitigate and even avoid some of the effects of the risks associated with executing a particular project. Hence, having identified and analysed those risks, it is recommended that strategies be developed, and implemented as appropriate, to manage them.
5. Keep all parties notified and updated
Finally, in addition to your team members, who should be regularly engaged on this matter, the client and other partners should also be made aware of the risks associated with the project, and advised should there be any new developments. Many clients are not fully aware of the challenges a Consultant or Vendor (of goods and/or services) can experience whilst executing their project. However, when they do rear their head, it may be necessary for the project implementation plan, or even the project scope, to be adjusted. Hence, having the cooperation and support of the client and other partners will be crucial, especially if a major change to the project is required.
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