A key element of project management, this is how to manage project risk
How to manage project risk, and risk mitigation, is one of the key components of the role of a project manager; clearly identifying and proactively taking steps to reduce risk as quickly as possible vital to the successful completion of any project. So, here, we’ll discuss how to manage project risk.
How to manage project risk
There are a variety of ways project risk can be managed and mitigated. These include:
Planning: meticulous planning is a vital part of the role of any project manager; scoping out the project, building your team, defining and delegating roles & tasks, and identifying potential risks throughout all stages of the process, such as:
- Changing cost of materials, services or software
- Delivery delays
- Organisational changes
- Lower-than-expected sales figures or lack of funding
- Procurement and production complications
Of course, some risks can’t be planned for or foreseen but, identifying potential challenges and barriers to your project being completed to the expected quality, budget and time at this early stage will help you build in contingency.
Open and regular communication: communicating openly, honestly and regularly with your whole team, whilst encouraging the same level of communication between your team members, is going to help you manage and mitigate risks; ensuring all members of the team are aware of what’s happening and what is or could cause a problem, whilst also fostering team work, collaboration and problem solving.
Not only this, but communication also helps to keep everyone informed and up-to-date of who is responsible for completing what tasks, as well as ensuring no task gets forgotten about.
Clear and standardised reporting: having a clear view of key metrics and a standard way for everyone to report project and portfolio statistics will allow PMO Leads and colleagues from various departments to quickly gain an insight into the project and how it’s progressing.
Having the ability to quickly and clearly oversee the project and identify key project metrics will help you and others involved to identify where risk may occur.
Managing project risk is one of the most important things you’ll do as a Project Manager or PMO Lead, and having the right tools and software to help you achieve this is crucial to the successful delivery of your project.
PMO software from Sycamore Gap
Sycamore Gap’s PMO solution has been designed with risk management and risk mitigation in mind; helping you easily access and clearly view project stats and run reports, as well as encouraging communication between your team.
If you’d like to know more about our PMO, please contact us, book a demo or sign up to our email newsletter for information & updates.