Risk management offers so many clear benefits that it has to be seen as vital for the proper operation of every single modern business. German Trujillo Manrique says that through the use of consistent and simple risk management strategies the impact of threats can be minimized and the potential of opportunities can be leveraged. However, this is only possible in the event that project risk management is properly set up, which is easier said than done. This is why the following tips should always be known by absolutely all managers.
Build A Really Strong Identification Process
Most projects are now managed without any formal risk identification put in application. We also see many managers they think they appropriately use risk management when the truth is that the techniques they use are not actually correct and cannot identify risks.
The best identification process always depends on project, company culture and the organization. You have to consider all these things when you choose the approach that would be the most effective. Sometimes risk management is really simple and just involves educating your team. In other situations, much more complex strategies have to be implemented.
Always Stay Positive
Remember that risk management always involves managing and identifying positive and negative risks. However, most project managers just focus on the really negative ones. Be sure that there are clear pointers and reminders in the risk management process so that positive risks can be considered. Deliverables that are done before the due date will always be positive and can have good impacts on project operations. Positive risks can help balance negative risks.
The Main Priority Should Be Efficiency
Identified risks are not equal. There are limitations in regards to how many resources can be used in order to mitigate risks. Because of this, you need to always classify identified risks based on probability and impact. When you do this you can fully understand the risks that need to be priorities so that you can focus on them. Risk register templates are always recommended. Many organizations use some sort of standard template for this already but if you need one, they are available online.
Correct Risk Ownership
In many situations, it is assumed that project managers own all risks. This is completely incorrect. Project risks will affect different areas of the business so the best resources to use to deal with them are those that have relevant skills and knowledge. Risk ownership should be properly determined in order to guarantee a proper result if something happens.
Proper Tracking Until Risk Closure
After identifying, classifying and allocating, the project manager has to track the risk until closure. Risks need to be appropriately communicated and monitoring is needed in order to be sure that they are being taken care of as they should. Regular monitoring and tracking are so often overlooked. If operations do not properly handle how the risks are managed, they can be in place when the belief is that they disappeared. Only the project manager should dictate when a risk is classified as solved.
If you have any questions about this article, please contact us here at Spews. We would love to hear from you!
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