Understanding The Project Risk Management
Risks cannot be prevented from coming up. Resources may not be enough, or maybe costly. The employees may not be performing well. Even the manager may fall shot sometimes. The risks may be classified into either positive impact risk or negative impact risk. When these arise, mitigation plans are expected to be utilized. These risks must be addressed strategically by the management team.
Be Strategic when dealing with Risk Management
There are several of strategies to be applied when dealing with risks. The managers should first identify the risk by gathering enough information, and this could be from people or from the other reliable sources. The project manager may set a meeting and ask the team to help him identify the risk. The stakeholders of the company must appoint a team that will be responsible to the resolution of the problem. In whatever kind of risk it may be: be a supplier risk, because the resources cannot be delivered, or not enough; or be it budget risk that could mean overspending or underspending, the manager still need more heads to think and collaborate with him.
Quantitating risks must be numbered so it will give a more accurate figure to be analyzed. There are available tools and formulas to make it easier to quantify these risks.
Meanwhile, Response risks can be gained from the actions taken by the team or by the manager. If the manager has been so aggressive that he did not take precautionary measures or he did not address the situation rationally, chances are the project would collapse, or the result of the project would be unsuccessful and unsatisfying on both company and the client.
Monitoring and controlling risks is done when the manager keeps track of the project through observation and evaluating the performance of the group and effectiveness of the strategies used.
Risk Management Process includes :
The involvement of the stake holders and take part in the resolution, by doing their roles; the anticipation of the possible risks and the possible solutions; identification of the impacts that the risks could bring; delegation of tasks and responsibilities to the team members and giving them the instructions on what and how to do it ; and the creation a plan for uncertainties and on how to strategically eradicate these.
Risk register has a significant role in Project Risk Management. It refers to the documentation of all the procedures that the project has undertaken and the conflicts that the organization has faced. It also includes the strategies and the actions that the company and the management team have done. After all the necessary information have been gathered and stored, these must be accessible to be used when faced with the similar situation.
Risks can be two faced: the first could bring success and satisfaction to the stakeholders, and the other could bring failure and disappointment. But both should be seen as opportunities to become more efficient and productive as ever as possible. Proper education and enough motivation will help both the company and the management team when dealing with risks.