The Principles of Project Risk Management
Identifying, anticipating and evaluating risks in a project in all its future stages, planning, and putting in place an effective response mechanism, to minimize, or avoid the impact of such risks is called Project Risk Management. PMP boot camp classes give a complete run down on Project Risk Management through a series of short, high impact sessions including case studies and cardinal rules of risk management, some of which are given below:
1. Inclusion of risk management from project inceptionRisks in a project cannot be managed if plans for management of such risks are not on the drawing board of a project.
2. Identification of risks
Identifying risks does not require an actuary. Inputs from sessions with team members should be encouraged, and information generated from reports should be scrutinized to analyze and identify recorded risks of the past and possible risks of the future.
3. Being receptive to inputs
Keeping channels of communication open is necessary to receive inputs on unexpected developments.
4. Risks can also be opportunities
A risk is an unexpected event. Sometimes, the risks are outcomes of a particular sequence of events or circumstances that can be predicted. And sometimes, taking a risk can bring positive and beneficial results. It is essential to weigh the risks in a manner that includes looking at probable positive outcomes.
5. Tagging risks with response mechanisms
Risks and the response mechanisms need to be tagged together. The department or manager responsible to tackle a particular issue needs to be identified and delegated.
6. Grading risks
Risks have to be objectively assessed and graded as per priority. Likewise, response has to be initiated as per priority too.
7. Risk analysis
Analyzing the nature of risks, the sequence of events preceding it and the expected outcomes helps to plan a proper response to the risk, at various stages of the risk manifestation.
8. Implementing risk response
The final objective of risk management is to avoid or minimize a risk by accepting it. By evaluating and planning responses, the risk is to be either avoided, or the effects of the risk are to be minimized. Sometimes, unfortunately a bad project may have to be shelved on the basis of risks that develop en route. Implementing the risk response is hence the single most important aspect of Project Risk Management.
9. Logging project risks
Logs have to be maintained and they should list, tag, analyze and provide a response to all known and potential risks. and it should etc.long with a periodical review . Tshould accordinglyTeam leaders and members should periodically review these logs to assess progress and make project course corrections as necessary.
10. Tracking risks
Tracking the risks as they develop or manifest helps to be aware of any situation and initiate an appropriate response.
Effective Project Risk Management will ensure the success of a project through economical use of resources and onsite PMP boot camp classes are the best way to equip key personnel with effective project management skills. The onsite knowledge transfer ensures that the key concepts of project management help complete the project within the time frame, set budget and meets all mission objectives.