Managing Risk in Project Management

Risk Management is one of the essential subdivisions in Project management – particularly for fixed budget projects. A project manager is expected to do Risk management as a Key activity in every organization. I remember my initial days, we used a simple excel sheet to list down some common risk items and have a management plan for each of them. Most of them are scope and resource based. Recently I met few managers; they concentrate only on Risk Management in large scale projects – as primary activity. Let’s discuss few suggestions from these managers to manage risks efficiently in small and medium size business.

1. Scope your deliverables
Many projects get started without a clear definition of the required deliverables. A project Charter – can be a simple WBS excel file – helps here a lot. This document should define the project vision, objectives, scope and deliverables.

2. Identify Risks at early stages
A simple discussion session with team – or a workshop – can help to identify risks at early stages. A Risk is an unforeseen event that might impact negatively on the delivery of project in the future. The third party delays, resource unavailability can be examples here. The best suggestion is to document every risk and determine its likelihood and severity of impact on the project.

3. The Team should take the accountability
As a project manager, the best way is, passing few of the responsibilities to each member of team. Suggest the team, which elements of the project charter they are responsible for delivering and makes them accountable by holding review meetings each week to measure progress.

4. Plan and Monitor Risks
The Risk plan should be created at early stage. This document helps to identify actions that the team can take to reduce the likelihood of the risks occurring. As the project progresses, the Risk monitoring meetings are required to review the risks we already identified. Ask questions, and measure review responses and action items.

Communication helps to reduce the stress in risk management. The suggestion is communicate the project risks openly with boss / project sponsor, so everyone is aware of them. Share regular report lists of the risk and plans / actions for resolving them. It will give them confidence in your ability to control the project and it will help gain their support when you need it.