Project Managers typically account for risks that could impact their projects from the very beginning and start documenting them during the initiation phase of projects. This is mainly done so that:
- potential issues are identified as early as possible
- unwanted surprises in projects can be eliminated
- project budgets can be more accurate
- expectations are set for all stakeholders to clearly understand the project risks
- decisions made include analyses from risk assessments
Even after the project risks have been documented, Project Managers still need to take additional measures to ensure that they are effectively managing the risks to mitigate their impact on projects. Here are some examples that can help Project Managers protect their projects from unplanned risks:
Create and Maintain a Risk Register
A risk register is a document used to identify and track risks on a project. It includes:
- the type of risk
- a risk description
- likelihood of the risk occurring
- impact if the risk occurs
- the risk owner
- mitigation plans
- due date
Maintaining a risk register is key to preventing risks from turning into issues because as new information becomes available, the Project Manager must update it to reflect any new changes on the status of the risk – this is especially crucial in the documentation of risks that were not identified at the beginning of the project.
Be Proactive
Project Managers need to be proactive by controlling risks on their projects and enacting mitigation plans as opposed to reacting to risks when they are about to turn into issues that will derail a project. This is why it is important to evaluate the likelihood of risks occurring and preparing yourself and the project to take preventative measures that will lessen this identified likelihood. Waiting to respond after the risk occurs may end up costing the Project Manager valuable time on the project and would consequently result in schedule delays or cost increases.
Assign Risk Ownership to the Appropriate Resources
A Project Manager does not own all the identified risks on a risk register and has an obligation to ensure that they are all assigned to the right resources. For example, if there is a risk related to a project event that falls under a different department, a Project Manager could assign the ownership of that risk to the impacted department’s manager or a resource from that team.
Assigning risk ownership to others doesn’t mean that the Project Manager forgets about it and hopes the assigned owner will monitor the risk; the Project Manager must continuously check in with the risk owners and work with them to monitor risks and update the risk register accordingly on a continuous basis.
Communicate Risks to All Stakeholders
Effective communication lies at the base of every successful project, and this also applies to the management of risks within projects. As a rule of thumb, a Project Manager should send out weekly status reports to all stakeholders that also includes a summarized version of the risk register so that everyone is on the same page with regards to the statuses of project risks.
Risks that possess either a high likelihood of occurrence or a high impact to the project must be discussed during meetings with stakeholders so that clarity can be provided on decisions that will address the risks, and expectations can be set on when the risks will be closed.
At PM Imperative, we cover the latest trends in Project Management and Product Management. As PM practitioners, we understand the value the Project Managers and Product Managers bring to each organization and that’s why we focus on the most practical strategies that Project and Product Managers can implement immediately. If you found this post useful, be sure to check out our latest book: The PM Imperative – Guide for Leading & Managing Projects, People & Delivering Value. https://pmimperative.com/shop/
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