3.5 Steps to Effective Risk Management

Following 20 years at a large Canadian telecommunications firm, Bruce established the project management consulting firm Solutions Management Inc (SMI). Since 1999, he has provided contract project/program management services, been a source for project management support personnel and created/delivered courses to over 7,000 participants in Canada, the United States and England.

  Estimating   Risk Management  

Is it possible to do effective risk (threat) management without spending endless project resources? The Project Management Institute outlines the risk management processes as:

1. Plan Risk Management
2. Identify Risks
3. Qualitative Analysis
4. Quantitative Analysis
5. Plan Risk Response
6. Control Risk

PMI also offers certification in risk management (RMP). It doesn’t take much research to find consulting companies that offer their own approach to risk management. They promote their offerings as propriety methodologies that will reduce risks in a variety of business environments

These two approaches are time-proven. They are very detailed oriented and involve significant investment through a combination of effort and project budgets. Put simply, they are expensive and they work.

My approach to all facets of project management is to leverage leading frameworks in a way that is practical and effective. Not all project teams have the luxury of adequate time and budget to clearly define all elements of a project prior to starting delivery. This is not to say project managers shouldn’t be very detail oriented, but rather look for a balance between building a detailed plan and the business need to quickly deliver.

I extend this approach to risk management. I call it my 3…

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