Our focus as Project Managers is to ensure that we are accountable for every potential issue which could affect the positive outcome of a project.
Planned Risk Management
Every project inherently has risk, risks which must be properly planned for an managed in order to ensure the success of the project. Project Risk Management is the area of project management which is dedicated to identifying, prioritizing, tracking, managing, and insuring that risks will not negatively affect the outcome of the project process. Every project, and every potential issue, must be accounted for to ensure project success, regardless of the size or scope of the project.
Risk Management is an iterative process which occurs at every level of the project planning and execution process. As project managers, we plan risks into our projects, continually identifying new risks to the project, analyzing the impact and cost of each risk to the cost, schedule, and scope baselines, and planning an appropriate response to eliminate the risk, or minimize the impact of the risk if it does become realized.
Risk Management Policy
First, we create a Risk Management Policy which is customized to each project. The Project Risk Management Policy is approved by our client which identifies where the potential risks are, who will be responsible for ensuring the “safety” of the project, establishes the proper financial reserves to ensure that the project timeline will not be impacted by risks, and schedules the processes throughout the project lifecycle. We also use various tools to categorize, identify impact, and track risks.
Second, we work with the project team, our customers, and industry experts to identify the potential risks the project faces, and ensure that each risk is understood clearly and articulated precisely. We then use Qualitative and Quantitative analysis to exam each risk in both terms of the impact that each risk have individually and in terms of the project as a whole.
Finally, each risk response is planned into the project to insure that the risks, even if they should be realized, will not have an impact on the successful execution of the project. Risks happen… and issues will occur… but that does not mean that the project should suffer from them. By proper planning, risks will not have a negative impact on the project being delivered on time and on budget.