There are no non-risk projects, but it is the nature and complexity of projects that tend to determine the impact of the success of the project as a whole. But whether this project is small or large, simple or complex, an effective risk management strategy will minimize its impact if, and when, risks occur. To manage risk, need to identify and analyze it before the project starts and throughout the project’s life cycle.
The main task involved in risk management is:
Creating a risk management plan that will help identify and analyze risk, monitor risk and respond.
Set and maintain the MISSIS logs include the risks and severity. This is a useful document not only to monitor risk but also to communicate risk to all stakeholders.
Analyze the probability of every risk that occurs and the impact on the task level and in the entire project in terms of results and scheduling
Develop strategies to respond to risks that occur
Including contingency funds and building time contingencies into the project schedule
Risk management is not only the responsibility of the project manager but also stakeholders because they have personal interests in projects that are successfully resolved. So stakeholders must also be aware of all the identified risks and plans that are applied to manage and mitigate them.
There are general causes of risks that are easily identified in many projects, such as:
Skilled members of the project team go during the project
Business decisions and agreements are not achieved at a good time
Poor customer expectations
Lack of clarity in business requirements documents
Technology limitations such as performance problems or capacity
Poor communication between customers and providers
But the Risk Management Plan must also be flexible enough to deal with risks that cannot be predicted and not identified before they occur. Very often the strategy used to deal with this unexpected risk that determines the main success of a project.
For all the risks that have been identified both before the project begins or during the project, the project manager usually has determined the solution. These risks have the potential to cause late schedules and prevent task delivery but are relatively easily managed by experienced project managers with good management and communication skills.
There are various ways to respond to the risks that have occurred but the most common way is:
Accept-acceptable risk, in this case the project manager must persuade the customer that the schedule, budget or results will not be fulfilled. Customers must accept such irregularities if the project is considered successful.
Transfer- If the risks that have occurred in such a way that certain tasks, features or functions cannot be delivered, it can be transferred to the future project thus delaying the need to deal with it in the present. This response will require handling through a formal change management process.
Mitigation – It is possible to provide acceptable solutions that will minimize or eliminate problems.
It should be noted that risks can sometimes have a positive effect and can actually cause an increase or increase in projects that have not been considered from the start.
The risk management plan will also include project risk priorities and rank them in connection with the budget, project schedule and results. The rating will realize that some projects can be accepted while some are not acceptable and will require a decent solution.
Risks will never be removed from a project but it is possible to reduce risk impact by learning from the bot experience