Analysis In Action

  Decision Making   Governance   Leadership   Risk Management   ProjectsAtWork  

Project managers have the immense task of juggling requirements and resources that are often not under their direct control in order to produce the required project deliverables within the limited constraints to which they must adhere (scope, time, quality, etc.). Even if the perfect project plan could be designed and executed, it would not remove all of the risks that could ultimately impact a project. Plans must inevitably change for one reason or another.

During the phases of a project, there are three major activities focused on reducing project risk. The first risk-reduction activity occurs during project planning, when a proactive risk assessment is conducted and the identified risks are either mitigated or avoided (e.g., by modifying the project plan), transferred (such as through insurance), or accepted (by doing nothing and accepting that “if it happens, it happens”). The second activity is the continual assessment of risk throughout the project. The final risk-reduction activity is to hold a retrospective “lessons learned” at the end of the project, which will have the least impact on the current project but will serve to benefit others in the future.

However, for the unforeseen problems that occur throughout a project, risk management is too late, since it has already been completed, and lessons learned are too early, since it is …

Please log in or sign up below to read the rest of the article.