4- How to plot project risks
If you think as a project manager that you can identify and handle all projects’ risks, you are wrong. No one can see the full picture in details and find all risks face the project, so in order to effectively plot your project risks follow these actions÷
1- Get all risks list: gather you team members, senior management- or at least representative- and your client stakeholders –or at least a representative- and give sticky notes colored where each color represent project area like (Cost, Quality, time and budget) then ask them to write as much as they can all risks they see on the project respecting the color methodology. Once they finished take all inputs and filter them and push it into “Risk Register”.
2- Set Probability and Impact: have a team with relevant team members who has experience in such field or with risk experience if you have one in your organization to set the probability (likelihood) and impact of each risk, do not go in details make it simple and short rating like (High, Medium and Low).
3- Develop mitigation techniques: identify the high priority risks calculated from 2nd action and start developer proper mitigation techniques for each risk which can be
a. For Opportunities
i. Exploit: where the plan or / and scope might change to ensure getting the opportunity(most of the time this technique is costly)
ii. Enhance: where you do actions to enhance your status to increase the probability of getting the opportunity.
iii. Share: hiring third party to share the opportunity with you so both of you get the benefit.
iv. Accept: no further actions to get the opportunity but studying and waiting for that opportunity.
b. For Risks
i. Avoid: where the plan or / and scope might change to avoid the risk totally (most of the time this technique is costly)
ii. Mitigate: where you do actions to reduce the impact of the risk to an accepted limit ( which will follow the organization risk tolerance)
iii. Transfer: hiring third party to take actions to reduce the risk and take the full responsibility when risks happen.
iv. Accept:no further actions to get the risk but studying and waiting for that risk.
4- Quantify Mitigation and Impact: in order to get approval for mitigation technique you have to transfer it into dollars language which senior management can understand, because the total amount of quantifying the mitigation will be the contingency amount you can ask from management.
Finally, risk identification is not something to be done once in the project, above actions must be repeated at least weekly to make sure that risks assessment remained the same and so your mitigations techniques.
Notes (Place Your Notes Here)