Risk management is an important aspect of successful project execution. This article introduces the concepts of risk and risk management and describes how the application of techniques of risk management, the likelihood that the project will increase success in achieving its goals.

What is the risk?

Risk is the possibility of damage or loss. Risks are inherent in every project and can be seen as anything negative impact on the progress or project goals are considered.

What is risk management?

Risk management can be defined as “the culture, processes and structures necessary to achieve opportunities while managing potential adverse impacts are addressed.”

From the perspective of project management, risk management is an ongoing activity throughout the project to identify potential risks to delivery, to assess their likely impacts, develop mitigation plans and monitoring progress.

Risk identification

Find the risks is an ongoing process. All persons involved in the project should be encouraged to problems that might occur and then add the “risk register” which is a list of all known project risks into account.

A risk is initially in a state of “open” when it placed added to the risk register and remains in this state until it has been completely revised and a mitigation strategy has been implemented.

If the risk is registered, locates the person who creates the entry and an estimate of the probability of the question and the magnitude of the impact on the project if the risk does eventuate. The scale used can represent the likelihood and magnitude vary between organizations and projects, but I recommend you keep it simple so that anyone can use in the project and involved.

If you are a project manager, you should seriously consider regular risk workshops with the project team and key stakeholders. These workshops are used to find brainstorming and other risks to the development of defensive strategies.

Risk Assessment

Generally it is the responsibility of the project manager to ensure that all new risks are properly evaluated when the risk register have been added. For large projects it may be a special risk manager, who holds this responsibility.

to validate the first step in assessing the risk of new risks. We must ensure that the risk is not duplicated in the registry and also to recognize and separate the issues, what are the impacts that actually occurred, but as those that might occur in the future.

Once a risk has been identified, are also checked to ensure they are appropriate and consistent with other risks to a valid element of the new register, and the estimates of the likelihood and magnitude of the Creator risk.

Monitoring and control

Each risk on the register should to an owner who has to determine the responsibility for the appropriate mitigation strategy and also be assigned to monitor the risks on an ongoing basis. Make sure that the risk of a person to understand the owner’s situation and with specific risks allocated to them and also to ensure that they know and accept ownership is the risk.

For each risk to ensure that it identifies a series of preventive measures. It can be as simple as determining the impact of the risk is negligible and there is nothing more to do, but in most cases, an active strategy is needed to reduce the likelihood of risk or address potential impacts. It is important that clear and realistic deadlines are set for implementation of each mitigation.

On a regular and continuous basis, preferably weekly, should the risk register will be reviewed to determine whether measures were taken, and if the likelihood or impact of a risk to be set.

Climbing

Each risk will be assessed as a potentially significant impact on the project or shall occur as very likely to be brought to the group or persons responsible. The risk that the necessary measures overdue should be higher. The path of escalation will depend on your project governance structure and will likely include a project or program office, project sponsors and steering committee.

Improved security of supply

good risk management increases the likelihood of success of a project or reduce the likelihood and impact of adverse events in this project. By proactively identifying and preparing for potential problems throughout the life of the project, you will be well prepared for the challenges that can arise and be prepared to reduce the risk of potential threats to real problems.

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