No project is ever without risk, but it is the nature and complexity of the projects that are likely to determine the impact of risk on the overall success of the project. But if the project is small or large, simple or complex, effective risk management strategy will reduce the impact if, and when, the risks in advance. In order to manage risk is necessary to identify and analyze them both before the project starts and the life of the project
main tasks of risk management are .:
- Establishment of Risk Management Plan which will assist in identifying and analyzing risks, monitoring risks and respond to them.
- establish and maintain a risk dashboard Registration risk and severity. This is a useful instrument not only to monitor risks but also to communicate risks to all stakeholders.
- Analyzing the probability of each risk occurring and its impact on the project level and the overall project in terms of delivery and timing
- be developed to respond to risks that occur
- Including contingency funds and build time capabilities in the project
Risk Management is not only the responsibility of the project manager but also stakeholders that they have a vested interest in the project to be completed. So stakeholders should also be aware of all the risks identified and the plan is put in place to control and reduce them
There are common causes of risk that are easy to identify in many projects, such as. :
- Skilled members of the project team from the project
- Equipment Failure
- Business decisions and contracts are not reached in time
- unhealthy expectations customer
- lack of clarity in the business requirements document
- Incorrect evaluation
- Technology Limitations such performance or capacity issues
- poor communication between the customer and provides
But Risk Management Plan must also be flexible enough to deal with the risks that could not have been predicted and was not detected before they came. It is very often a policy that is used to deal with these unexpected risks which determines the final success of the project.
For all the risks that have been identified either before the beginning of or during the project, the project manager would normally have a certain solution. These risks can cause delays in the plan and prevent the delivery of projects, but are relatively easily managed by an experienced project manager with excellent management and communication skills.
There are various ways to respond to the risk that has occurred, but the most common ways are:
adopted – risk can be accepted, but in this case the project will convince the customer to schedule, budget or products will not be met. The client must accept such deviations if the project is considered a success
Transfer -. If there is a risk that has occurred so that certain tasks, features or functionality can not be delivered to them could be transferred to future projects so delay the need to deal with it in the present. This response would require treatment by a formal change management process
reduce – .. It may be possible to provide a satisfactory solution that will reduce or eliminate the issue
It is noteworthy that the risk can sometimes have a positive effect and can actually lead to improvements or additions to the project that had not been considered initially.
The Risk Management Plan will also include prioritizing project risks and their ranking in relation to the budget, project schedule and delivery. The rankings will recognize that some project risks might be acceptable, but some are unacceptable and would require a feasible solution.
Risk can never be eliminated from the project but it is possible to reduce the impact of risk by studying the experience of both your own projects and others. It is extremely valuable to document lessons learned from the project to improve the risk management process on future projects.
Managing risk within a project is necessary to keep the project on track and these are important skills for the project manager. The ability to identify and measure the risks in the project and how to respond to predicted and unknown risks can learn the professional courses in project management recognized methods such as APMP, PRINCE2 and PMP.