Managing project risks is a touchy subject with project sponsors. The majority of executives who sponsor projects are hesitant to authorize risk management efforts. This is because in the past many executives have gotten burned by risk management efforts that cost a great deal of time and money and produced little or no results. So it’s hard to get the sponsor’s approval to do risk management. Often executives will say, “Start work and we will put out fires when they occur.” But firefighting is not the way to succeed on projects. Project Risk Management Main Page
There is an unfortunate emphasis in many organizations on firefighting as opposed to careful planning. This includes planning for the risks the project faces. Many project sponsors like the idea of not committing to highly detailed project plans. They think, and rightly so, that this limits their ability to “be flexible” and make changes whenever they want. Project managers who buy into this thinking have happy sponsors in the beginning of the project because they can start work fast. In this situation, the team puts little effort into project planning and there certainly is no project risk management. Unfortunately, the same project managers are routinely surprised by risk events that easily could have been anticipated during the planning phase. Because there was no risk management, the team has to stop work and figure out what to do about the risk(s) that smacked them in the face.
Managing Project Risks The Wrong Way
When the project is late and over budget because of a couple of these risk events the sponsor’s not happy. Project managers need to remind executives of these failed projects to “sell” them on the need for risk management on future projects. Presenting Your Risk Plan
Managing Project Risks The Right Way
A risk management process can pay big dividends, particularly when it is scaled to fit each project. In fact, the entire risk management effort for a small project can take place during lunch with the sponsor. The sponsor and project manager spend one hour to identify the risks, analyze them and plan ways to avoid or mitigate the significant ones. There are bare-bone risk management techniques that don’t require a lot of paper work. Small Project Risk Management
To learn more how to manage project risks, consider our online project management courses. You work privately with a expert project manager. You control the schedule and pace and have as many phone calls and live video conferences as you wish. Take a look at the courses in your specialty.IT Projects Business Construction Healthcare Consulting