Risk Management is one of the most beneficial factors for an organization. Not only can you gain a lot of value for your company when you deal with an uncertain project in a proactive manner, you can also save a lot of money whilst avoiding damage. Minimizing the impact of project threats and seizing better opportunities occurs with effective risk management. Delivering projects on time, on budget, and with high quality is a result of your correct project risk management. Making sure that team members do not have to repair the failures of a certain project, which could have been prevented, also results in a more enjoyable and relaxed work environment.
There are several things team members can do in order to prevent risk in organizational projects. Here are 8 simple rules:
1. Risk management should be part of every team members goals. In order to reap the benefits of project risk management every team member must be honest about embedding risk management as part of their project. Running a project with the mindset that no risks will occur is a faulty approach that will ultimately hinder the project outcome as well as the company in the long term. Team members must act on their own rather than blindly trust the project manager. Take it up on yourself to ensure that your due diligence is being done for the entirety of the project.
2. Be careful of the risks from the beginning. Identifying the risks that are present is the first and most important step in project risk management. Identifying these risks allows you to focus on future scenarios that may occur and how you could potentially combat them. Planning is a sure fire way to ensure your project gets completed unscathed and successfully.
3. Constant communication between team members. Having constant communication between team members is essential for identifying the existence of risk. Ensure risk communication is a continuous part of your group meetings so all employees are fully aware of what is occurring.
4. Be aware of threats and opportunities. Focusing on positive project risks translates into positive opportunities. Focusing on uncertain events that are beneficial to your project as well as organization can be done when you manage your time to deal with both kinds of risks (threats as well as opportunities). Just focusing and planning on the negative outcomes that could occur is not as profitable as approaching both kinds of risk.
5. Clarify responsibilities. Identifying the risks is one step of project risk management. The next step however is to clarify who is responsible for what specific risk. If team members are directly responsible for a particular risk than they will take more responsibility because they will feel the heat if the risk is not handled accordingly.
6. Prioritize. Not all risks should be treated equally. Prioritizing higher impact risks allow you to manage your time more efficiently by spending more time on risks that cause the biggest potential losses.
7. Implement risk response. Implementing a risk response prevents a threat from occurring or trying to minimize the negative effects. Proper execution of such a response is critical. Your team members must decide on whether they want to implement risk avoidance, risk minimization or risk acceptance. Focusing on minimizing and avoiding risk should be your priority.
8. Tracking risks and what to do moving forward. Tracking tasks effectively everyday allows you to track risks. Focusing on integrating risk avoidance initiatives in day-to-day tasks allow team members to effectively stay on top of their risk management. Answering questions like what risks are likely, and what can be changed are important moving forward.
I cannot stress enough how important project risk management is for a company’s long-term success. Following these rules ensures you’re team members are taking the initiative to reduce risk. Again, risks can never be 100% avoided no matter how much planning takes place, the key is reducing risks and being able to overcome them.