Why it is important to perform project risk management
Team leaders face serious challenges in their professional lives. This is because the complexity of product development is increasing rapidly and requires specific skills. One of the manager’s key skills is project risk management.
The peculiarity of this approach lies in the ability to anticipate likely difficulties in the work. In this case, the manager must be able to minimise threats and maintain high productivity in the team. The use of such a strategy makes it possible to achieve the following objectives:
- keep the overall level of risk within acceptable limits for the project or programme;
- ensure a timely response to situations that may adversely affect the achievement of the set objectives;
- reduce the impact of negative factors on the objectives of the project and the organisation as a whole;
- optimise work processes to increase productivity.
Risk management is a comprehensive approach consisting of several steps:
- planning;
- identification;
- analysis;
- planning and implementation of response actions;
- tracking threats in the project.
Despite its importance, not all managers give it the attention it deserves. Adhering to project management principles can also be challenging, complex, and time-consuming. However, there are areas where risk assessment is essential. These include insurance, hotels, and air transport.
The process itself involves analysing historical data and current information. However, not all companies have a sufficiently reliable basis for a thorough investigation and identification of regularities. For example, when implementing projects, such data is not available, making it impossible to analyse the process itself.
Where to start
One of the key elements of the strategy is the creation of a risk and issue management plan. It should cover every step of the threat assessment and prevention process. This document will help us act quickly and minimise damage in the event of force majeure.
Another essential document is the risk log, which records all factors affecting the project. It can be kept as a spreadsheet, with risks and problems listed separately.
It is crucial to identify and assess the extent of the risks and prepare the team to deal with them. To do this, everyone needs to have a clear understanding of their roles and responsibilities. All team members should be able to identify threats at an early stage. When a risky situation arises, it is important to respond in a timely manner.
In addition to risks, it is vital to assess project success factors. These factors represent the performance goals that need to be achieved and show how the product changes during the process of working on it. Analysing such criteria will show you the possible threats associated with them and enable you to develop a strategy to avoid them.
