Risk Profiles
Risk to a project can be measured on two major axes: Likelihood of failure and Impact of failure
The more likely a problem is to occur, the more risk it poses to the project. Even fairly minor problems or issues can become a threat to the project if they occur so frequently that they can’t be avoided. Similarly, the impact or consequences of a problem are also important. Some problems can stop a project in its tracks all by themselves.
Many systems exist for categorizing risks into different categories but the one presented here is fairly simple. In this system each risk item is qualified on two scales: likelihood and impact.
Each scale is divided into two simple categories of “ Low ” or “ High ” and risks are rated according to each scale.
A. “ Critical ” issue represents one that will stop the project in its tracks (known as a “Show Stopper”) and must be dealt with immediately.
B. “ Major ” risks represent a significant threat to the project because of their frequency or because of the seriousness of their impact; these threats usually have to be dealt with as soon as possible.
C. “ Minor ” risks which are neither likely nor particularly serious and can be left until others have been dealt with. Minor risks however have an annoying habit of turning into major ones when your back is turned.
Typical actions are as below
Research : The risk is not yet fully understood. Its impact or likelihood of occurrence may be unclear or the context in which it may occur could seem unreasonable. Further research by members of the project team is
warranted.
Accept : The risk is unavoidable and must be accepted as-is. This category of risks become extremely important to a project since they cannot be resolved but still represent a threat to completion. Anticipation therefore become the key to dealing with this category of risk.
Reduce : The risk as it stands is unacceptable. The project team must act to reduce the risk and to establish contingency plans should the risk occur. The risk will have to reviewed in future to define the threat it poses.
Eliminate : The risk is unacceptable under any circumstances and must be eliminated as a possibility. The project team must put in place processes and procedures not only to ensure the immediate threat is eliminated but that it does not re-occur in the future.
Resolution of risks
Once you have profiled your risk they can be ranked into an ordered list representing the various threats to the project to be dealt with. The more significant can then be examined and assigned an action by the project team.Typical actions are as below
Research : The risk is not yet fully understood. Its impact or likelihood of occurrence may be unclear or the context in which it may occur could seem unreasonable. Further research by members of the project team is
warranted.
Accept : The risk is unavoidable and must be accepted as-is. This category of risks become extremely important to a project since they cannot be resolved but still represent a threat to completion. Anticipation therefore become the key to dealing with this category of risk.
Reduce : The risk as it stands is unacceptable. The project team must act to reduce the risk and to establish contingency plans should the risk occur. The risk will have to reviewed in future to define the threat it poses.
Eliminate : The risk is unacceptable under any circumstances and must be eliminated as a possibility. The project team must put in place processes and procedures not only to ensure the immediate threat is eliminated but that it does not re-occur in the future.
Tag: PM236A56. Let me share all of you about #5 Tips for Project Management Success,, I hope you enjoy it
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As a project manager, time management skills are essential because you are dealing with a wide range of tasks that demand a quick turnaround time. Planning your day will go a long way in keeping you organized and increasing your productivity. Assist your task planning by using project management software which helps you track the work of you and your team.
If you are not very tech savvy, a simple to-do list can also be a great organizational tool. Prioritize your most important tasks by putting them at the top of the list and less important ones at the bottom. Having a visual plan of your daily tasks helps to keep you on track and aware of time.
Related post: Free ebook 104 secrets to become a great project manager
2. Include stakeholders in important project conversations
While you will have plenty of responsibilities regarding the project, don’t neglect your clients.
Good communication is essential is keeping both parties informed of project progression, curtailing scope creep, and apprised of changing requirements. Some clients may have different expectations when it comes to communication, so make sure to establish the frequency and type of communication (like emails, phone calls, and face-to-face conversations) at the beginning of your project.
Establishing communication expectations early helps alleviate stakeholder uncertainty about communication frequency and delivery.
3. Regularly communicate with your team
Daily team communication helps keep misunderstandings and unclear requirements under control. Keeping your team informed in every step of the project is essential to project management success.
For example, a study published by Procedia Technology found that good communication skills were the cornerstone of project management. The study examined over 300 “construction project managers, architects, construction managers, engineers and quantity surveyors” and their successes and failures on various construction projects.
4. Anticipate project setbacks
Even the best-laid plans often go awry.
Remember that even with a high amount of planning and attention to detail, your project may still encounter some challenges. Pay attention to complaints from stakeholders or colleagues, and other warning signs, like a missed deadline or cost overrun, that there may be a problem.
Preventing a crisis will keep your project running smoothly, save you a lot of time, and keep you, your team, and your stakeholders confident in progressing with the project.
Unfortunately not every complication can be avoided. Crisis management skills are essential for dealing with the unexpected. Project managers need to be flexible and pragmatic. Improvise and make sharp decisions when needed.
Related post: 92 free project management templates
5. Stay focused on the details
A common problem project managers encounter is having the project aims not aligned with the organization’s objectives. A great project manager will strategize a plan for the project to lead back to the overall success of the business.
Know your project’s scope by heart and avoid wandering outside of the project’s requirements. It’s too easy to get lost in minor details and forget what your focus is, so a well-planned project scope is essential for success.
And final, you should use KPI to measure effectiveness of the project, here are full list: 76 project management KPIs