“A Ship in a harbor is safe, but thats not what ships are for !“
Projects that have no risks are no humdingers ! Typically a project has to test your capabilities as a team thereby kindling the competitive spirit. Such projects help in team building as well as benchmarking performance in an organization. Project risks and benefits always go hand in hand. Risk is basically a component of any work that on materialisation leads to an undesirable outcome. In simple words risk is a problem that is yet to occur. Risk management is similar to an Insurance cover. As long as things are rosy and going fine people feel it is unnecessary drain in the budget but the the moment we are blindsided by any risk then everyone is clamoring why it was not done.
Organizations and Project teams that define risks in a project demonstrate increased maturity. We need to acknowledge the grey areas / realities well in advance and accordingly plan our resources. Otherwise what typically happens is that we end up going on a “firefighting” mode thereby crisis management. And in the process we end up doubling our resource utilisation, escalating budgets and above all a very dissatisfied client.
As project head it is our bounden duty to set aside the “Can -do attitude ” and deliberate on some “Cant -do ” thinking also . Analyse your risks, take steps to mitigate possible risks, plan your contingencies, put systems in place to monitor risk trigger points. Scope the entire process into your project plan and schedule. Stakeholder / client when informed of the possible risks tend to show resilience and greater confidence on the Project Leadership.
Principally 5 steps involves in assessing and quantifying of project risks are Risk identification, exposure analysis, contingency planning, Risk mitigation and Managing risks. There are tremendous advantages of Risk Management like increased clarity of the project to the team, increased team morale once you get over a scoped risk, and finally there is clear management focus on the weaker links of the project to ensure that attention is given to reinforce them.
For a more detailed discussion on the various aspects of Risk like Risk planning, Risk mitigation, Critical path method, Risk management and models like Monte Carlo effect contact me. I would love to share our learning over the period of years