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Management
Written by John Strange - MBA, PMP in Best Practice ,Risk Management
Introduction
In project management we have unforeseen and uncertain or unplanned events that
can impact a project either positively or negatively. A negative risk is normally referred
to as a threat whereas a positive impact on a project is an opportunity. In other words, a
risk is any unexpected event or result that may negatively affect the projects timetable.
Generally, a risk can affect the people, processes, technology and resources involved in
a project.
Many times a risk is unpredictable and you may not tell when it will occur. Due to their
uncertainty, project risks require serious preparation in order to manage them efficiently
and effectively. Therefore, project risk management refers to the process where project
managers use their experience and other professional tools to minimize any potential
problem that may be a threat to the success of the project.
Scope: This is based on the quality of your estimates, dependencies and scope before
starting a project. If you guess the estimates, then there is high likelihood of occurrence
of a risk. If the team of your work or project managers are unsure about a particular
estimate then this is a risk. It is important to have clear and accurate estimates before
the commencement of a project.
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Change Management: A project requires to be closely monitored to ensure a
continuous flow of work. Mostly, a change in management its an implication of a project
that has failed because they continually add budget and time to the project.
Design: Low quality design is a risk. The flexibility and feasibility of the architecture and
design are a key to the success of a project.
Authority: The teams for the project usually lack authority to complete project work and
this influence to achieve project objectiveness.
This is the first key step for a sound risk management in projects. This step involves
uncovering, recognizing and describing the risks that might affect the project or the
outcome of the project. The early the identification of the risk the better. Therefore, risk
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identification refers to the process of listing the potential risks and their characteristics.
The results of risk identification are usually documented in a risk register. The risk
register includes the listed risks along with their sources, potential risk responses and
the risk category. This information is further used for risk analysis which in turn will
support creating risk responses.
The main aim of risk identification is to ensure that all risks are identified. Ultimately, the
purpose of risk identification is to minimize negative impact of project hiccups and
threats and to maximize the positive impact of the project opportunities. Its through the
Identification of a risk that the project manager is able to control the impact of the risk on
the project. Potential project risks awareness reduces the numbers of surprises during
the project delivery and, thus, improves the chances of project success allowing the
team to meet the time, schedule, and quality objectives of the project.
The whole team should be involved in tax identification since its typically is one of
brainstorming and all the brainstorming rules apply. All members of the project team
should identify all the potential risks in a project.
Risk analysis is basically risk assessment. Risk assessment is very important. It refers
to a careful examination of what in the project could cause harm to people, so that they
can take precautions or what they should do to prevent harm.
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Record your findings: These is the process of listing or putting down in writing and
it’s a legal requirement. This is done immediately after the know-how of the hazard
and how they might be harmed.
Review your assessment and update as and when necessary: This is actually
the reviewing of the risk assessment since work places stay the same.
3. Evaluate or Risk Ranking
Evaluating the risk is done by determining the risk magnitude (size) which is a
combination of likelihood and the consequence of a risk occurring. This is where the
project manager identifies the consequence and the probability of the risk to occur at a
specific condition. A risk is about uncertainty and therefore not predictable but can be
controlled.
This is also known as risk response planning. In this step of risk management, the
project manager is required to assess the highest ranked risks and set out a plan to
treat or modify these risks to achieve acceptable risk levels.
Avoidance: This is where one decides to abstain from the areas, places or actions
prone to risk. For Example, if you feel carrying out a certain task or project such as
construction is too dangerous you can avoid the risk by doing something else.
Reduction: This practice includes mitigation actions that reduce the risk. For
Example, putting on helmet when cycling to protect your head from injury.
Transfer: This is where all the risk is left for the third party. There are two major
types of transfer, that is, taking insurance cover and outsourcing. For example, a
company may decide to transfer a collection of transfer risks by taking an insurance
policy.
Acceptance: This also known as risk retention. This is where one chooses to face
the risk and being ready of any consequence that may arise from his/her decision. In
other words, it is referred as risk taking in Business and Entrepreneurship. For
example, an investor may decide to invest an infant company anticipating good
returns in near future which is not assured.
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Risk monitoring and reviewing is the final step in risk management. It is the process
which evaluates and tracks the levels of risk in an organization This is the step that you
project risk, register and use it to monitor, track and review risks. Risk monitoring
purpose is to evaluate and keep track of the risks that occur and the effectiveness of the
responses which are implemented by a project manager or organization. Risk
monitoring is a continuous process in the life of a project. This is because the list of
project risks changes as the project matures, new risks develop or anticipated risks
disappear. Risk rating and priotizations can also change during the project life cycle.
Risk monitoring determines whether the risk management policies and procedures are
being followed and the remaining contingency reserves for cost and schedule are
adequate.
Voluntary: The risk monitoring as the name suggest, it is not required by the law but
companies and project managers carry out them to from the events which have
occurred in the past.
Obligatory: This is a risk monitoring strategy that is required by the law for some
organizations for proper risk monitoring and management.
Reassessment: this refers to secondary and tertiary assessment of risk and risk
management tools.
Continual: This is a risk monitoring strategy which is continuous.
If the stakeholders of the project fail to understand the project requirement, it is most
likely the project will fail. The stakeholders should be aware of all the estimates before a
project commences.
Mainly, the following is what the stakeholders should know before the project kick-off:
Project’s deliverables.
Key deliverables and their definition of “completeness”
Project’s goals and benefits
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Project’s quality standards and success metrics
Risks and issues associated with the project.
Project budget, time and resource constraints.
2. Create a Risk Response Team
This is another best practice to manage project risk. Sometimes a stakeholder may pull
funding and as a result an important technical component might break. Therefore, the
risk management team should be comprised of experienced members who have a
wide-range access to plan and risk controlling in the project. The team should have the
required experience ant training necessary to save projects when mishaps happen.
Basically, your risk response team should think of the worst-case scenarios and develop
contingency plans.
Project management responsibilities are not only for the project managers but also
every individual within an organization perform project management duties either formal
or informal. Essentially, project management skills are very important to any individual
whether a professional or not. Project management skills will help one identify, analyze
and formalize project managing roles comfortably.
For any project time is very crucial and scheduling will help you in managing time during
the project. Better scheduling and estimations will help the project risk manager improve
his/her success rate specifically when dealing with technical work.
The quality standard of a project is very critical in creative projects. Quality on projects
requires identification of standards and criteria to be set in each phase of the project life
cycle. A project manager should have a clear idea of what constitutes “quality”
throughout the project lifecycle based on the standards acceptable to every stakeholder,
especially the people on both sides who have to sign-off on the final deliverables. The
following are ways to do so:
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Break the project into multiple stages.
Establish objective criteria for quality measurement.
Document and share the processes with stakeholders on both sides.
Establish baseline for quality that all stakeholders agree.
Back claims with data whenever you can.
7. Make your project more transparent
Greater project transparency enables project communication, project budget and time
and the project changes such as changes in project’s scope, budget or deadline.
In an Agency setting, the project’s purpose is very important since its possible for an
employee to work on multiple projects simultaneously within the agency. The project
purpose acts as a direction to be followed for the success of a project.
A “super team” of experts will enable a project manager to maximize the impact of
resources. The role of “super team” is to move from one project to another to perform
the target task. This specialization will enhance efficiencies especially when carrying out
numerous projects and to manage the occurrence of any unforeseen risks.
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remote employees. Frequency of check-ins does not matter provided it is consistent.
Check-ins can be daily, weekly or monthly as long as you do it on schedule every time
and hold your team accountable.
Consolidation of all project related information and data help in leveraging the past
knowledge to deal with future issues. Consolidating all project-related data and
information in a centralized knowledge base helps anyone working in a project
management related role to freely access the information.
Tracking the deviations and correcting them as quick as possible help in improving both
current and future project performance. This can be done by gathering reports and
holding meetings regularly to identify when things are going off-target. The following
metrics can help you in estimating your deviation from the project plan.
When escalating issues, one should identify the intensity of the problem, give a
contextual data and finally offer suggestions on the corrective measures.
Practicing empathy will help you understand the true impact of your work and how you
can do it in the best possible way. In creative agencies, empathy is very vital and there
is no prescription for practice of empathy, you jus place yourself in the shoes of other
people.
CONCLUSION
The risk management process also helps to resolve problems when they occur because
those problems are continuous and unpredictable or uncertain. Effective risk
management strategies allow an organization or project managers to identify the
strengths, weaknesses, opportunities and threats of a project. To ensure a project
succeed, you should define how you will handle and identify potential risks, mitigate or
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avoid problems when you need to do. The most successful project managers recognize
that risk management is very critical since project’s goal achievements depends on
planning, preparation, results and evaluation that contribute greatly to achieving specific
goals.
REFERENCES
(https://www.projectpractical.com/15-best-practices-for-effective-project-risk-management/)
12.03.2020