The importance of managing your risks – the 5 things you really need to know…
The importance of managing your risks – the 5 things you really need to know…
The first thing we think about when managing a project is probably not managing your risks. I think this is because we’ve all been conditioned to think risks are somehow negative things that we should avoid labouring on. Therefore it’s not unusual for less experienced Project Managers to lay out risks at the start of a project, and then do some sort of courtesy update on them every month or so.
Get your strategy for managing your risks right and you are well on the way to becoming a great Project Manager. You can get whole books on this stuff but I think they’re only 5 rules for becoming really good in this area:
Rule 1: Get all your risks out on the table.
As an output of effective planning you should identify all the risks that could impact the successful completion of your project. And don’t get hung up here about the number of risks you’ve identified, however small. Think about this, if there were only 1 or 2 risks to a project why the hell are you there for?
Rule 2: Present your risks well
Some of the risks you articulate will get to the top of the organisation for resolution. So avoid emotive language or any statements that could burn bridges with future stakeholders.
Rule 3: Prioritise your risks.
This one’s really simple. Establish how likely your risk will be (try doing this on a scale of 1 to 5) and what the impact will be if the risk happened (again using a scale). This way you’ll quickly understand the risks that need to be managed most urgently.
Rule 4: Work with the business to understand how your risk will be mitigated.
This is your route to getting airtime with business managers and ensuring the risks your are most concerned about get the profile they deserve. The best Project Managers out there will attempt to lay out some mitigation for a risk internally, but then call a meeting to ratify these with the relevant business managers impacted by the project. The output of this session will be a universal appreciation of the risk and a high quality piece of mitigation that everyone buys into.
Rule 5: Evolve your risks
Risk management is a living thing. Don’t be afraid to add new risks when you update your plans and likewise, if you’re managing well, items that existed at the start of your project will either be way down the priority list or no longer a risk at all.