As the famous adage goes, “whatever can go wrong, will go wrong.” In other words, no matter how cautiously you plan your project, there is no guarantee that everything will work out as expected. There will always be unforeseen occurrences that can hurt the venture, which is why a vital aspect of project management is handling risks.
Identifying and planning how to face potential threats have a direct impact on your project’s success. While you cannot control the situation fully, you can always prepare to minimize the harm that these risks bring. Note that inadequate project risk management is one of the main reasons why many ventures fail.
If you want to carry out project risk management effectively, consider the following dos and don’ts as a guide:
Do Make Risk Management a Priority
It’s easy to put risk management planning on the back burner before starting the project as enthusiasm and passion run high. However, considering the impact of poor project risk planning, this should be a significant part of your preparation from the start.
If you plan, you can readily face unexpected threats and minimize potential damage.
Do not Forget to Create Separate Plans for Individual and Project Risks
There are two types of project risks. One is risk events that may affect one or more of the project goals. Project risks, on the other hand, are those that can cause the entire project to fail.
Given these two classifications, managing risks should include creating separate plans on how to address them. Crafting a risk management plan for individual risks involves identifying and mitigating threats by reviewing experience, standard practices, or brainstorming.
Creating a plan for project risks is different as it involves looking at the big picture rather than the minute details. In such a plan, you should consider economic, technical, political, and similar risks that can bring your project to a halt.
Do Create a System to Document Risks
Every project implementation will give you valuable lessons on risks, the probability of it occurring, and the most effective ways to handle them. As you implement numerous projects, you will discover that similar threats tend to happen often.
Ponder on these risks and document them so the information will not go to waste. If you have a risk repository, it will be easier for you to identify and create a risk management plan every time you handle a project since you have a guide already at your disposal.
Do not Fail to Talk About Risks
Sometimes, talking negative things about the project may feel like jinxing it. However, even if it makes your team uncomfortable, you should talk about potential threats so you can be prepared. Being overly optimistic can hurt your project more than being realistic.
As you continue to include risks in your discussion, every member of your team will develop vigilance. This quality can significantly help you as the members will readily report problems at the stage that they can still be solved. Assign accountability persons to ensure that every risk is overseen.
On top of the pointers mentioned above, you can also rely on well-designed project management software, like Liquid Planner when managing risks. This software has a cross-project visibility feature that allows you to gain insight on risks and other critical factors. Get in touch with LiquidPlanner, Inc. today for a free trial.