How To Minimize Project Risk
Mitigated can cause the project to go over-budget and over-schedule; the project would most definitely face severe turbulence.To successfully reduce project risk, a project manager needs to develop risk mitigation strategies for the risks identified. Therefore, the challenge of reducing risk begins with risk identification. After all, you cannot reduce a risk that hasn’t been identified.
After you have identified risks, you need to assess the risks both qualitatively and quantitatively. By assessing project risks, you can prioritize then develop appropriate risk mitigation strategies. Risk identification and assessment is a recurring activity.Next, let’s look at some activities that a project manager can perform to reduce negative risk. Positive risks are opportunities that should not be reduced, rather they should be enhanced!
The term risk in this article refers to negative risks. For more on positive risks, refer to the article.Image Credit: Project Managers should Identify RisksWhile identifying risks, project managers need to document all possible risks that they can foresee. You must be wondering, “How can.
Risk Management
A project manager reduce risk all alone?' Well, project managers can’t do it on their own. Therefore, to reduce project risk, project managers must involve internal and external project stakeholders. Depending on the power and influence on the project outcome, the stakeholders would provide varying risks. For example, suppose you have a quality assurance person in your team.
Do you think the person would identify similar risks as, say, the technical architect. Therefore, use or grid to identify stakeholders that can provide valuable inputs during risk identification.Another easy way to identify risks is by taking inputs from a project manager that has executed a similar project. Since the ability to identify risks generally improves with experience, take inputs from project managers who have been there, done that.
. You may have tobefore you can post: click the register link above to proceed. mod manager download?.If this is your first visit, be sure tocheck out the by clicking thelink above. Napoleon total war mod manager. To start viewing messages,select the forum that you want to visit from the selection below.Wambat is holding a weekly raffle giveaway of Steam games to promote the Fourth Age Total War mod and his Let's Play campaign!Check out the announcement thread.
Even if they haven’t, such project managers could function as experts.Tip: It’s most effective to gather people in a room and brainstorm on the possible risks that could impact the project. Read the article.Image Credit: Project Managers Should Assess RisksNot assessing the risks properly can lead to colossal losses.
For example, Tata Motors was trying to setup a automobile manufacturing plant in a part of India that has a volatile political environment. Ultimately, the work on the plant had to be stopped and the plant relocated to another part of the country. This led to major losses and project schedule delays.While assessing risks, project managers use both qualitative and quantitative methods. The probability and impact of each risk is taken into account. Some risks have may have minimal probability of occurrence, but could have significant impact.
This is one of the ways that a project manager can reduce risk. For example, though strikes aren’t common in the United States, the probability of occurrence is low, however the impact is tremendous. Similarly, in Europe and Asia strikes are more common and hence have a greater occurrence. In this case, the probability would be higher, while the impact would be the same.Read the article to getter a better understanding of identifying assessing risks. Project Managers should Plan Risk ResponsesEach identified risk needs to have a risk response strategy in-place. When a risk response strategy is not in-place, all hell can break loose.
For example, the oil spill in the gulf of Mexico, B.P. Was accused of many lapses, including using equipment that was not up to the mark and delayed communication after the spill. An oil spill has a low probability of occurrence, but the impact, as we all know, is significant. Without an effective risk response strategy, an oil spill can lead to billions of dollars in losses.Not all risks can be mitigated, refer to the article to understand the various risk response strategies that you can use.So, how can a project manager reduce risk? Use the tips given this article and fewer sleepless nights and nightmares.
You should also follow the.
8 Key Steps to Minimize the Risk of Outsourcing. Discussion of Critical Issues:This first step should be taken at the initial stage itself.
Start by discussing all relevant issues with the outsourcing firm. Structure the modalities of the agreement in such a way, that the success of the project is the joint responsibility of both your company and the third party service provider. Sharing Responsibilities:The burden of managing the risks and the responsibility for accurate execution of the process has to be shared by the concerned parties. This will ensure that neither side is in a position to shed accountability.
Ensuring Business Goals are Achieved:The outsourcing agreement should be such that it yields a specific business result to you as a client. Ensure that it does not merely become a channel for you to acquire inexpensive labor. The service provider should also be informed about the goals of the business model that your firm is trying to achieve, so that they can also take steps to contribute towards achieving those targets. Establish Quality Standards and Performance Indicators:Document what quality means to your company.
Document what quantity means. Define the parameters that represent success and the ones that represent failure. There should be timelines, Key Performance Indicators (KPIs) and benchmarks for achieving targets. If these indicators are breached, then penalties should be imposed and an enquiry should be conducted into the probable cause of the failure to reach the agreed targets. Conduct a Trial of the Services:There should be a trial period where the could be put to test to check if they can handle the work. This could be of the duration of one month or three months or any other time period, that you both agree upon.
In case the process fails during that time, then you always have the option of entrusting the project to another firm. If you are satisfied with the services, then you could finalize the agreement and the service provider can start the process in full earnest. Ensure Flexibility and Adaptability:Business situations keep changing constantly. These changes impact both your firm as well as the service provider. That is why it is essential that the outsourcing model and the process methods are kept flexible. These models and methods should not fail with the slightest of changes. The process methods and the outsourcing terms should be amenable to changes as and when the needs of your firm progress.
How To Perform Risk Management To Minimize Project Risks
Ensure Confidentiality:Today, confidentiality is everything. Therefore, you should sign a non-disclosure agreement with the service provider. This will ensure that your company’s information is kept confidential.
There will be certain processes where you might have to give access to the service provider to intranet sites and other important company information. It would be in your best interest to sign agreements with the service provider that protect the secrecy of this data. You could also conduct site visits at the office of the outsourcer to ensure that the data is being kept safe. Ensuring the Right Recruitment:There are many businesses that insist on overseeing project recruitments by the service provider, so that only personnel that suit the company’s needs and have the right skills, are on-boarded. You could do this while outsourcing, especially if the work requires a specialized set of skills or access to extensive knowledge. Invensis Technologies is a leading IT-BPO service provider with 19+ years of experience in facilitating superior business performance for customers across North America, Europe, Australia and other parts of the world. Our outsourcing/off-shoring offerings include IT Outsourcing Services, Call Center Outsourcing Services, Finance and Accounting (F&A) Outsourcing Services, Back Office BPO Services, End-to-End eCommerce Support Services, Healthcare BPO Services, Corporate Training, Digital Marketing Services and more.
Our services and solutions enable businesses to accelerate their operations, slash costs and drive growth.