Why Project Management Is Risk Management

Session 1 in Project Management is Scheduling and Cost Control.   Session 2 is Risk Management.   Why?   Because any project, from the moment it is conceived to final completion, is defined by change and risk.

Risk is an unforeseen circumstance that will impact the construction project (in a good or bad way).    Changes, and risks come from and happen to the design, the building process, the schedule, equipment, suppliers, subs, architects, consultants, the site, mother nature, government regulation, etc.   The list is extensive.

Anticipating risks and changes, mitigating their impact and preparing a plan B  are essential to good project management and getting you home, occasionally, at a reasonable hour.  From experience you know that the earlier you anticipate a problem, the more options you have, meaning more control and lower costs.

The first thing to do is to have a risk assessment & mitigation plan that will provide you with more of a grasp on what types of risks you might be facing as well as the potential consequences of those risks and finally, what steps will be necessary to mitigate the risks.

Here’s the plan:

  1. Identify as many potential risks as you can think of.
  2. Determine the probability of each of those risks occurring.
  3. Determine the impact of each risk should it occur.
  4. Consider what steps you can take to mitigate each potential risk.

Sound like a lot of work, planning and prediction? It is. That’s why RiskMP software can be your saving grace. RiskMP is the latest innovation in risk management software that can save you a lot of time, money and frustration. Here’s more information on how RiskMP works. And if you need help navigating the software and a complete risk management plan, Risk Management workshops are available to walk you through the most productive means of putting your Risk action plan into effect before your next project.