Risk Management on Projects
Project Risk Management
How can job risk management differ from any other type of risk management? Well in most regards it does not. However, as it is a project focused activity it will help simplify the overall focus by looking just at the center job fundamentals of scope – which are cost, quality and time. Remember that, I will test you afterwards!
Get to know more about gestion des risques
There are a range of good training videos available on YouTube that pay this principal. I have added a few below to help bring home the purpose of the article. I find watching a demonstration frequently easier to take in than studying some else’s thoughts.
Project Risk Management
So what’s project Risk Management is all about? In a previous article I talk about what risk and risk management are all about. If you are still confused about exactly what risks are and what risk management is all about then read this guide, it must bring you to the picture. On endeavors we talk about danger as any function that could cause an unplanned change to the jobs scope – i.e. affect the project costs, timeline or quality of the deliverables, or any combo of the three.
What is not always evident when talking about project risk management is that we also ought to think about the positive impact a risk may have on a job – i.e. reduce expenses, reduce the time line or increase the quality of deliverables. In reality it is not very often that project risks present favorable chances. Never the less, as project managers we have a responsibility to recognize and act on such dangers negative or positive. That’s Project Risk Management.
David Hinde wrote a fantastic post back in 2009 about using the Prince 2 Risk Management technique. Without getting imbedded in any Specific methodology, the overall approach to project risk management should follow a similar frame and this is as good as any for the purpose of this article:
David talks by way of a Seven Step procedure,
Measure 1: Having a Risk Management Strategy
This means setting up a process and procedure and receiving full buy-in from stake holders in how the organization will handle risk management for your job.
Measure 2: Risk Management Identification Techniques
Where do you begin in the identification of dangers around a project? There are lots of risk management methods and David suggests a few which are excellent. But I like to take a step back and make a list of all the critical elements of a job on the grounds of “if this task doesn’t happen will it be a show stopper?” . This helps be build a prioritized list of critical activities against which I can then consider the risks – what might go wrong to affect this task.
Here’s my thought process on risk identification summarized:
- List out critical deliverables
- List out, against every deliverable, dependent tasks
- List out from all dependent tasks and critical deliverables “any” potential event that could delay or block the delivery to strategy.
- Grab a template hazard analysis matrix and fill out the initial pass of assessment – probability v effect for every risk.
- Take it into a project meeting and use it as the baseline for brainstorming.
Step 3: Risk Management Early Warning Indicators
Do not rely on basic performance of the project as an indicator that everything is going well. Status reports showing a steady conclusion of tasks could be hiding a potential risk.
In risk management lots of other factors need to be on the project managers radar on daily basis. Things that I always search for are delivery dates from sellers – the way confirmed are that they, is there a move in delivery dates (you will only see this if you frequently request verification updates from the vendor), resource issues – key individuals taking sick leave or personal leave more often than usual.
Delays in getting particular approvals signed-off by the steering committee or other governance bodies – will this impact orders going out or decisions being made on critical tasks? Getting qualified folks in for inspections and certificate (new buildings by way of instance call for a lot of local regulatory reviews). These are only a few of the daily challenges that a Project Manager will confront and all can be signs of trouble to come.
As you gain more expertise in risk management you start to instinctively recognize the early warning signs and challenge the culprits sooner in the procedure. You will also locates the a great project manager will build-in reduction for the frequent project ailments at the very beginning, sometimes viewing the tell-tale signals when selecting vendors or suppliers will be sufficient to select improved alternatives and that is what I call dynamic risk management at work.
Also keep an eye on the world around you – economical or geological events elsewhere may have a dramatic impact on local providers and supplies of crucial project substances. By way of instance, flood in Thailand has influenced the delivery of various computer components which are fabricated there, causing effect in both distribution prices and lines. (Yes, I operate in Asia so observe this sort of impact first hand. .)
Click For More Info gestion des risques