Risk Management Approach
discover how to Mitigate, Manage & Avoid project risk
Risk management is the process of identifying potential problems that might arise over the course of a project, and creating a plan for mitigating, managing and/or avoiding them. In the past, this was a fairly informal processand in some cases, was treated superficially or ignored.
However, enterprise project managers in every industry have now recognized the importance of identifying and avoiding project risks, and have begun to take a more formal risk management approach that includes:
- Starting the risk management process as early as possible in the project.
- Outlining the process that will be used to evaluate and address any issue that occurs.
- Defining which team member(s) are responsible for tracking and reporting on risks.
- Prioritizing project risks based on the likelihood that they will occur, and the severity of consequences.
- Keeping the lines of communication open; many project managers build time for a risk management discussion into their daily or weekly calls with senior stakeholders and the rest of the project team.
- Including an issue management plan in the overall project plan.
- Using an advanced project management solution like Clarizen to track all risk issues and status, and communicate with the team about issue status, responsibilities and outcomes.