Changes are an inevitable part of project management. They can bring not only opportunities but also risks that may jeopardize the success of the project. Good risk management is essential to ensure that the project stays on course even amidst changes. In this blog, we share some practical tips for improving risk management.
- Regular Risk Assessment
The first step is to identify and assess project risks. This includes not only risks directly related to the project but also risks arising from potential changes. Regular risk assessment helps keep the risk list up to date and ensures that new risks are quickly identified. Identified risks can be managed in a portfolio, such as in Thinking Portfolio’s Project or Risk Management Portfolio.
- Prioritize Risks
Not all risks are equally significant. The project team must prioritize risks based on their impact and likelihood. Pay special attention to risks that may have the greatest impact on the project’s schedule, costs, or quality.
- Plan Risk Mitigation as Part of Risk Management
For each identified risk, a plan must be drawn up on how to manage or, if necessary, mitigate the risk. The plan should include mitigation measures to reduce the likelihood of the risk, actions to take if the risk materializes, and the responsible parties and schedules for the actions.
- Train the Team in Risk Management
The project team should be aware of the project’s risks and also be able to identify potential new risks. Organize training sessions or workshops that focus on risk management and emphasize how each team member can help identify and manage risks.
- Improve Communication
Good communication is an essential part of risk management. Team members should be open and honest about risks and report observed threats as early as possible. Good communication also helps ensure that all parties are aware of the risk management plan and know how to act accordingly.
- Monitor Risks and Continuously Update Plans
As the project progresses, new risks may emerge, and existing risks may change. Therefore, risks must be continuously monitored, and plans should be updated as necessary to reflect new conditions. This helps ensure that the project has the best possible chance of succeeding amidst changes.
Preparing for risks brought by changes thus requires regular risk assessment, prioritization, planning, team training, communication, and monitoring. All of these must be taken into account to identify and manage risks and reduce their impact in changing situations.
Learn more about Thinking Portfolio’s Risk Management and Project Portfolio by downloading
Thinking Portfolio Project Portfolio Whitepaper (PDF)
Thinking Portfolio Risk Management Portfolio Whitepaper (PDF)
