Project Risk Management
Successful projects are the result of clear vision, thorough planning, and careful execution. Risk management can greatly increase the rates of successful completion of any project types and produce greater ROI for the business.
IT projects are particularly vulnerable to adverse risk events. And since IT is the central nervous system of business operations today, even minor issues in performance can potentially cause severe damage to businesses. It is imperative to have a well-defined IT risk management process and team around IT projects in order to ensure their timely and successful completion.
Every project is different. And every project will have a different project risk profile. Some will be very risky and others not so much. So it makes sense to apply the right amount of risk management rigor,depending on the overall riskiness of the project.
Once you have defined the right degree of risk management for a specific project, the tools and processes should align to that assessment. Using the wrong set of tools will either add unnecessary overhead, or make it difficult to record and monitor risks during the project.
Project managers and the PMT need to know where to look when identifying possible risks to the project. The technology, resource plan, schedule and WBS are the first places to look. But there are other sources of risk that we need to be aware of.
Qualitative and quantitative risk assessments have their place in deciding which risks to deal with and what to do about them. But knowing which assessments to use and why is more important.
Risk management is a continuous process - it doesn't stop until the project is over. The PMT needs to be watching the indicators that will give them advance notice of risk events so they can respond quickly, before things get out of control.
Using the lessons learned from completed projects and archiving the data for later use is the key to getting control over risk. Historical risk data is one of the best inputs for future risk identification.
Failure to address risk proactively and continuously is the reason most projects fail to achieve their original objectives.
Project Risk Management is the process of developing an appropriate project risk management plan, identifying risks, analyzing risks, developing appropriate responses to risks, and monitoring risk triggers.
With the amount of money being invested in projects of every type, ignoring risk management is simply bad business.
Take our project risk management workshop and learn how to make your projects a success.