Managing project risks: safely

Risks are there at all levels. Project risks gets a particular focus here.

Understanding the related terms like issue and problem helps to focus on better risk management

A. Lot of importance is given to prepare for risk management:

1. Identify risks sources related to requirements, design, product, services, government norms and so on

2. Setup guidelines and ratings for evaluating risks

3. Formulate strategies (macro pointers) to manage risks

B. With this strong preparation, we can easily identify risks and also write them as formal risk statements

C. When more number of risks are identified, prioritization is required by evaluating ratings for each of the risk related to probability of occurrence and impact. Calculate RPN – Risk Priority Number and arrange the risks in the descending order of RPN

D. As per the prioritized risks, risks are mitigated using various risk strategies at macro level and action plans at micro level

E. Risk management is sustained using:

a. Tracking of risks at project, program and org level

b. at established frequency for tracking

c. with ownership, date of completion and status assigned to each of the risk

d. after the action plan is implemented, the risk is re-evaluated and prioritized again

e. this practice makes it a dynamic risk management

f. some of the risks need contingency plans also

g. few risks can be mitigated straight away. Brainstorming and Decision Analysis and Resolution (DAR) have to be used for finding the root cause of the risk occurrence and come up with solutions / action plans