How to Do Risk Management in Projects? Some Things to Consider
Adequate risk management under the eyes of Project Management anticipates and counteracts the variables that may threaten the success of your project.
What is risk management?
Uncertainty is also a management issue at a project site. So you have a planning programmed to the millimeter or a suitable management of budgets and logistics; there is only one variable that the project manager conceives as certainty: its strategic direction is subject to risks and changes. Not everything can be controlled. New market demands, macroeconomic crises or disagreements with suppliers, among other external factors, can abruptly reform everything that was planned.
The success of a project team depends on the quality of the result and the maximum return on capital, according to the use of planned time and resources. How then does risk management support an ideal contingency plan? The risk management is the means through which uncertainty is managed systematically in order to reduce the probability of occurrence of results negative and increase the probability of achieving the project objectives. During this stage, the different existing risks must be identified, the probability of their occurrence determined and the consequences they could generate, as well as classifying them.
What are the main risks in project management?
If your strategy is to carry out an adequate risk management plan, first know the common areas of incidence in the development of a project:
– Scope risks: the client’s competitive strategy can be altered in the middle of the development of a project or even before it is planned. These variations are frequent because the product must constantly adjust to the demands of the market and the action of a possible competition. The result: an increase in demands and values in the development of the final product that the Project manager and his work team must warn in advance.
– Risks in planning: Proper planning must foresee all possible scenarios and also quantify them, both in the probability that they occur, as well as in the degree of deviation that they would suppose with respect to the scenario initially considered as ideal. In other words, the program may not develop as originally planned, which does not necessarily reflect an error in the strategic direction. An unpunctual delivery of supplies by external suppliers, accidents, weather events or other setbacks can alter the initial scheduling of the plan, to which the project manager must have a previously prepared contingency plan.
– Technological risks: the different levels of scope in the objectives mean that the computer tools and software used are not always the same. Detecting a technological problem, prior to the development of the plan, will avoid difficulties and critical delays in the delivery of the product thanks to a coordinated work with the project management and the systems area.
– Risks in the supply of resources: nothing is planned even if we already have a strict supply of raw materials, machinery and equipment. For this reason, the Project manager must include strategies that optimize the use and management of resources such as the lean or supply chain, which reduce unnecessary expenses in the process and, even so, maintain the quality statutes necessary to guarantee successful results. On the other hand, the performance of human capital may also be subject to modifications. Considering that the personnel who start the program do not always end up being the same, having a plan that includes time and capital to train and adapt new workers will be more than effective in strengthening their efficiency and productivity.
How to carry out adequate risk management in a project?
Faced with the threat of suffering damage, loss or setback in the delivery of the final product, taking a Master’s Degree in Project Management that includes the bases for seeking intelligent risk management, can offer the opportunity to achieve an unforeseen positive result. After all, reducing the margin of error for a project will depend on how you approach, plan and execute risk management activities for a project from its initial phase. In addition, it manages sufficient resources and time at each stage of development, to establish a strategic direction that senses the dangers to which the product is exposed.
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