Three Golden Strategies For Effective Project Risk Management

Written By Jennifer Walkup
Published Date  Feb 15′ 2018

Managing and mitigating risks is a prime determinant of overall project success in any consulting project. Project Management discipline has established a solid foundation that makes project risk management a well-documented practice, including identifying accurate project scope to manage stakeholders effectively, and using the right risk assessment tools to manage project risks.
Even with these guidelines, the best project managers sometimes find it challenging to manage project risks effectively. In this article, we share the three golden strategies that enable consulting teams to control and reduce risks.

   1. From Kick Off to Sign Off

Many project managers start a new project with a strong kick off, documenting all risks in a well-designed risk register, which is one of the well-known critical risk management tools. However, the enthusiasm for following a rigorous risk-management process decreases  as the project progresses.
A good way to combat a decrease in enthusiasm and keep the team committed to the task, is to frequently set aside time for project risks discussions and updates to the risk register. Doing this will help you keep on top of the game, and no sudden or unplanned surprises will arise.  In these meetings, always encourage team members to speak up with any concerns and discuss any warning signals, and always update the risk register.

   2. Prioritization Matters

Incorporating risk management processes and activities to daily, weekly and monthly routines will help you maintain a clear picture of project status. Reviewing the risk register, and discussing it with your team, will help you prioritize the significance of each identified risk, starting with the most dangerous ones.
Risk prioritization can be done by assigning quantifiable parameters to each risk based on the probability of occurrence and the success impact of the risk. These terms should be used to communicate with different stakeholders.
Other risk management tools can also be used to give a complete analysis of the various risks you identify, such as cost and schedule performance indexes.

   3. Keep Tracking

It is imperative to stay focused while managing a project.Tracking is an essential tool to maintain focus, and stay within cost and schedule variants. Project risks are no exception when it comes to  tracking. The first two strategies support the tracking function and make it easier for you to collect needed information and data to make risk tracking an integral part of your project management process.
Risk management tools like project network diagram and decision trees will also enable you to risk register and track risk status based on priority.

    CONCLUSION

The majority of projects rarely go according to plan. Your role as a project manager or team member is to be committed to dealing with project risks. Use the three strategies we shared to mitigate the impact of a risk. By identifying, prioritizing and tracking risks, the project team will be able to complete the project within budget, and according to the quality standards and terms agreed upon.