In any project, there is guaranteed to be risk. And it is almost always guaranteed to manifest itself in your project in some way. An important part of a project manager's role is to keep potential risks from critically damaging a project. There are four main steps that a manager must take to stop this from happening:
-Risk Identification
-Risk Assessment
-Risk Mitigation
-Risk Monitoring
First you must identify the risks for your project. This is anything that could go wrong and harm your project. Four risk categories to look at are technical risk, project management risk, organizational risk and external risk. Make a list of all these risks. Next comes risk assessment. You and your team must discuss the risks and determine the likelihood of each risk occurring and the expected loss if the risk does materialize. Using these two numbers, you can rank risks. There are also many other ways to assess these risks that I will not go into detail about now. Then comes risk mitigation. This means planning what you will do with each risk if it materializes. There are 5 risk responses to consider: Accept, Avoid, Contingency Planning, Mitigate and Transfer. Finally you must monitor your risk. As the project goes along, you must keep track of the risks you identified, especially the important ones, and be aware if they begin to materialize. Sometimes, if you are not monitoring, they may materialize without you even knowing. Taking these four steps will allow you to keep risks, as much as possible, from potentially hurting your project.
-Risk Identification
-Risk Assessment
-Risk Mitigation
-Risk Monitoring
First you must identify the risks for your project. This is anything that could go wrong and harm your project. Four risk categories to look at are technical risk, project management risk, organizational risk and external risk. Make a list of all these risks. Next comes risk assessment. You and your team must discuss the risks and determine the likelihood of each risk occurring and the expected loss if the risk does materialize. Using these two numbers, you can rank risks. There are also many other ways to assess these risks that I will not go into detail about now. Then comes risk mitigation. This means planning what you will do with each risk if it materializes. There are 5 risk responses to consider: Accept, Avoid, Contingency Planning, Mitigate and Transfer. Finally you must monitor your risk. As the project goes along, you must keep track of the risks you identified, especially the important ones, and be aware if they begin to materialize. Sometimes, if you are not monitoring, they may materialize without you even knowing. Taking these four steps will allow you to keep risks, as much as possible, from potentially hurting your project.