Archives for category: Risk Management

We are on the last step of the 5-step process being defined to handle risks regarding your project.

With the risks identified and ranked, you and your team are ready to talk about how to mitigate these risks. Again, since generally teams are not staffed to handle every risk identified, the prioritization helps focus resources on the top-most risks. The rest go on a watch list that needs to be monitored in case things change. Read the rest of this entry »

At this point in the process, the known risks for the project have been identified and captured in a risk register, which can be a simple spreadsheet. Since no project is staffed to deal with every identified risk, it is necessary to prioritize the risks to focus resources on the biggest potential problems first. To determine the rank order:

1. Assess the probability and impact of each risk.

  • Probability is the likelihood of a risk actually happening.
  • Impact reflects the detriment to the project if it does.

2. Determine the rank by multiplying the value of the probability and the impact. Read the rest of this entry »

There are potential events you know about (i.e. known risks). There are potential events that you have no idea about (i.e. unknown risk). It is important to uncover as many known risks (both threats and opportunities) as possible to avoid costing the project time and money. Therefore, risk identification is not a project manager-only role, but rather, it is done best when many are involved. This post covers how risks can be identified and recorded. Read the rest of this entry »

According to the global standard for project management (as established by Project Management Institute), before you go off to do anything, you should plan what you are going to do. That even includes planning how you will manage risks. Yes, you must decide upfront (before you are deep into the muck of your project) how you will handle several key questions: Read the rest of this entry »

Do you mange risks?

As a project manager, do you do risk management? Are you aware of potential events that can throw off your project’s cost, quality, or schedule? Are you doing anything to protect against these events? Or since they are not a problem right now, then are you going about executing your plan until something unplanned comes up?

If this is your attitude, then you are not currently doing risk management. Risk management is an important part of project management that, in the long run, saves you time and money. Read the rest of this entry »