4 Must-Include Steps In Your Risk Management Planning

As learned in the PMP and CAPM Certification training - in order to be successful and a "sellable" tool in your project management process, your risk management strategy must involve four phases.

1.     Document a risk plan

As the project manager, it is your obligation to officially establish – at the start of the project – how you and your team will identify, record, and react to risks throughout the project, with the support of the client. Obtain the customer's buy-in and signature, and use it as a benchmark as you progress through the risk management process.

2.     Risk identification

Early in the project, get down with your team and customer and explore potential hazards to the engagement. Examine all alternatives that might have an impact on the project's timeline, budget, and resources. This activity will serve as the foundation for the remainder of your risk planning process, including how you will analyse potential risk items and continue to discover new risks during the engagement.

3.     Look for ways to mitigate risks

As learned in the PMP and CAPM Certification training - when you're working with your team and customers to identify risks, be sure to write what the overall impact would be on the project if the risk is realised, as well as how that risk may be avoided – or mitigated. You're essentially searching for every conceivable way to mitigate the risk if it affects your project. You know there will be some impact on the project in the shape of a potential budget rise or a timeframe extension in the case of risk mitigation, but with appropriate planning, you'll know what to do to reduce the blow and keep the project moving forward.

4.     Look for ways to avoid the avoidable

When risk avoidance is practicable, I prefer it to risk mitigation because risk avoidance is the process of taking proactive, evasive action to help guarantee that the potential danger is never realised. Although most risks cannot be completely avoided or forecast, your project will be better off if you can prevent them. You won't take the chance, and you've ruled out the idea of your project being thrown off track in the middle.

Summary

Setting out time on your project for risk planning tasks is crucial. When the project's potential hazards become apparent, you and your team will be considerably more prepared. Consider it similar to purchasing homeowner's insurance. You may never need to make a claim, but knowing it's there gives you peace of mind, and you'll be grateful you have it if the unimaginable happens.

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