Knowledge Base

Risk Management

Put it to simple words, risk management means preparing for the bad things that can happen. You think about what can go wrong and find ways to minimize the probability or the impact or you make plans for what to do in case that thing will hit the fan, It is one of the area in project management with one of the greatest impacts on project success as it put you one step ahead of the game. So you  need to put the right focus on this activities.
Of course it is difficult to anticipate all the risks and to always find the  measures. But it always pays the price. If you are constantly learning from your projects, you and your experts will get better at this in time.

Plan Risk Management 

Have at least an idea when and how you will do it, who is involved and how will you track it. Decide how you will prioritize the risks, what is your risk tolerance level and what kind of measures will you be able to define

Identify risks 

This should be a continuous activity and should be done by everyone n the team. Best source of risks are the project assumptions and lessons learned from similar projects (your own or others). Allocate sufficient time for this, at the end it will pay its price.

Prioritize risks 

You do not need to have something fancy. Just rate the probability and the impact and make sure you keep the same scale for all risks

Prepare responses 

Should be done for high priority risks. You could try to avoid it, minimize the impact or occurrence probability or you can transfer it. You can also accept the risk, but this should be done consciously (it does not means to ignore risks you do not like)

Monitor risks 

You need to monitor the risks continuously to make sure the probability or the impact is not changing. You need to see if new risks are generated

Key takeaway 

The entire team should keep an eye open on identifying risks. Constantly monitor them and define appropriate actions.This will give you a better chance to achieve project objectives

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