No more risks in your project management

Risk Management is one of the virtues a project manager should have ! Of course, you can read PMBOK / Chapter 11 but not only…

I gonna list below the 9 necessary steps.

But before, remember that : Criticity = Probability x Impact

Step 1 : Build a risk registry

Archive in the Project Management Information System (Microsoft Sharepoint for example), a log for each identified risk with the following arguments :

• Risk identifier (unique)
• Risk description
• Probability (unlikely, possible, highly probable)
• Impact (low, medium, high)
• A responsible for the risk management
• Status
• End-of-life estimated for the risk

Step 2 : Identify the risks with your team

The project manager is not alone ! risk management is a “core team’s job”

Each part of the project should be analyzed (scope, schedule, resources, budget, quality, sponsors, environment, stakeholders, providers, etc…)

Step 3 : Identify the opportunities

Even if a risk is frequently a threat, don’t forget it could be an opportunity. In this case, project manager has to explore it.

Step 4 : Analyze the root cause

Understanding the root cause will help the project manager to manage better the risk in order to reduce is criticity. Be careful if the risk become an issue !

Step 5 : Estimate the Impact

Project Manager has to build a “scoring grid” for managing the risk. This tool will help the team to quantify and classify the risks in the project.

Step 6 : Estimate the Probability (likelihood)

Same method as previous topic but for estimating the probability that this risk occurs.

Step 7 : Assign a responsible

Assigning a responsible will help the project manager to delegate the risk management to someone more skilled with the risk’s technical cause.

Step 8 : Monitor the risks

Reviewing the risk in project comity will help the project manager to estimate the total amount of the risk in its project. It’s also a good opportunity for updating the global risk status.

Step 9 : Communicate ! (again and again :-))

More than 80% of project management activity is communication. Then, communicate on risks identified and associated action plans !

Patrick

Note : same article in french here