How To Solve The Biggest Problems With Project Management
The process of identification of potential risks should start at a very early stage, probably during planning phase in a project and the risks require to be assessed throughout the life cycle. Risks may or may not occur during the project, but needs attention. The risk management has a various sequential processes and risks are expected at any stage in a project.
And that is why stakeholders play an important role in project management.
One of the key risks in a project is less involvement / engagement of stakeholders. Stakeholders’ involvement may impact the project positively or negatively. They also contribute more in identifying potential risks in a project if they are engaged timely and properly.
It is also an important and recommended practice for project managers to involve stakeholders in risk identification meetings.
PMBOK 5th edition under Risk Management knowledge area, recommends ‘Risk Register’, a key output in risk identification process, which records all identified risks along with necessary detailed information. This register acts as a key input for all other processes in risk management and subsequently updated during the processes.
The next immediate process post analyzing the potential risks, is preparing or planning the risk responses to the identified risks.
The mitigation for threats can be
- Eliminating the risk
- Reducing its impact
- Transferring it to a third party
Likewise for opportunities, it can be
- Making them to arise
- Increasing the chances
- Sharing with the third party
Reassessing the risks has to happen periodically during the risk management as the nature of risk may change in course of time. While reassessing, there is a possibility of identification of new risks and further they have to be analyzed qualitatively & quantitatively followed by risk response planning.
Risk auditing is the recommended tools & techniques to ensure whether the planned responses are implemented or not. Reassessing the risks & Risk audits fall under control risks process of Risk Management as per PMBOK 5th edition.