The first step in addressing Project Risk is Evaluation and Assessment
Questions to ask include: Is this appropriate project risk and opportunity? As a project manager, it is important to identify risk in project schedules (times, durations), costing and estimates and in execution or flow of the project.
Once risks have been identified, assess the identified risks in terms of probabilities and opportunity or cost levels. What is the likelihood of a risk event occurring? What is the expected impact? Quantify occurrence of each risk and opportunity.
The next step is to address the risks. In practise, typically only the most likely (top 10) risks get addressed. Establish a project risk management plan which includes risk avoidance and risk mitigation strategies. Develop the risk plan and communicate this plan to key parties. In this digital age, there is every reason to employ a software tool that will help you organize, quantify and address individual risks to create an effective plan. Tools such as RISKmp.com will help you create and clarify the plan in a timely manner.
Develop a plan to address risks over the course of the project life cycle. Risks will change over time, so the risk management plan will change over time. The risk management plan is not something that can be left in the outbox. It is important to continually follow up on risks and plans. This is an essential part of project management.
Track and monitor. As the project develops, risks will change, so plans must change. Keeping records can get messy. In this digital age that we live in, employ tools such as riskmp.com. Such tools ensure that this process requires minimal time and effort.
Communicate with key project team members. Successful risk mitigation requires communication with management, owners, contractors, subs and all interested parties. Again, employ digital tools to communicate clearly and concisely. Tools such as Riskmp.com provides you with tools to effectively communicate risk.
Establishing project governance programs, managing the risk register, addressing challenges that may arise from technical issues in engineering, scheduling, construction, and other areas.