A project’s risk management strategy is subject to two main constraints: time and documentation effort.
As every PM knows, time is the scarcest resource they have in their project. To be effective, the Risk Management process must be efficient and require only a minimal attention.
An additional constraint is the effort expended in documentation. Any process in project management that requires significant resources for documentation will normally remain on the shelf.
A successful project’s risk management process is governed by the parameters of ‘limited time’ and ‘minimal documentation’
The goal of any risk management system is to
- Get PM’s thinking about Risks and ways to mitigate them in advance
- Get PM’s to understand their Plan B, C and D intuitively
- Encourage PM’s to investigate opportunities and options
- Facilitate follow up on PLAN B and C and D as things change.
There are two distinct steps to implementing Risk Management in your company practise. The first is get the PM’s thinking about risk and uncertainty in the project; essentially to ensure that everyone understands the conceptual framework. The second is to provide simple tools for developing the risk management plan during the planning and scheduling stage of the project, and communicating, recording, following up on Plan B, C, and D during the project execution stage. Another important component of the system is the ability to communicate actuals from the site and assess their impact. Again, this communication must be simple and efficient.
So here are the recommendations:
- Training and refreshers — Every PM should have a solid understanding of Risk Management and how it applies to project management and the benefits of Risk Management to the project and the company.
- Tools – In this age of computers, software that allows the project manager to
- Formulate a project plan easily
- Communicate that plan to the team
- Incorporate changes, especially as the project progresses
- Incorporate communication from remote sites and team members.
Our solution to the tools question is RiskMP
- Management leadership. With management support for the time and attention spent on risk management, the process can succeed and open the company up to the benefits of Risk Management including decreased costs and improved processes.