Your organization is undertaking a major new project that will have a significant impact across the board. If we know anything about project risk, we know the bigger they are the harder they fail. What can you do to improve your chances of success? Here are some approaches to consider that will ensure your organization gets value out of the undertaking.
Leonardo da Vinci said, “Simplicity is the ultimate sophistication.” When it comes to prioritizing risks, this is good advice.
An effective risk management strategy identifies and includes “opponents” to your project. Project leaders must balance the sometimes-opposing goals of stakeholders, both external and internal, and make a compelling case for how everyone’s contributions fit into the big picture. [9 min, 20 sec.]
In the midst of the global economic crisis, some risk takers are being taken to task, and rightfully so. But not all risk is bad. Moving forward, what is the appropriate role of risk management and risk specialists?
Doing nothing is an acceptable response to potential project threats that are deemed relatively insignificant or highly unlikely to occur. But what do you do when risk mitigation activities have been curtailed and that improbable problem does indeed arrive? Communication and calm are critical, according to these project management experts.
Actually, it's not always "better to be safe than sorry." Value-driven risk management acknowledges that some risks are positive opportunities to be pursued, while others aren’t worth worrying too much about, given their unlikelihood of occurring.
Keep “business-as-usual” risks out of your project risk register, and use it to record real threats and opportunities, along with what you plan to do about them.
Delays can't always be predicted. But once they happen, their impact on a project can be proactively analyzed, helping project managers reduce or overcome the negative effects. This is the domain of Keith Pickavance, senior vice president with Hill International, once of the largest U.S. construction management firms. Here, he shares his thoughts on delay analysis, other project management trends and the ideal project manager.
As you begin to implement risk management approaches, record your actions and results for future reference.
When it comes to risk management, hope is not a strategy ... all single point estimates are wrong ... and communication is everything. Understanding these principles and two others are the only way to turn risk management theory into meaningful practice.