Risk Management is extremely critical on project and the benefits of it are huge. The result will be that you minimise the impact of project threats and seize the opportunities that occur. Also, your team members will be much happier if they do not enter a firefighting mode every time required to repair the failures that could have been prevented.
Some of the important steps / rules are given below.
1: Make Risk Management Part of Your Project
The first rule is essential to the success of project risk management. The risk management has to be part of your project to get the full benefits of this approach. Projects which deployed the risk approach on their projects, they are either ignorant, running their first project or they are somehow confident that no risks will occur in their project. That is the biggest risk on the project.
2: Identify Risks Early in Your Project
The first step in project risk management is to identify early the risks which are present in the project. It has to be done with open mind. If you knowingly ignore the risk which is in front of you, you are heading for disaster or you may lose golden opportunity.
3: Communicate About Risks
Failed projects show that project managers in such projects were frequently unaware of the big hammer that was about to hit them. If you don’t want this to happen in your project, you need to pay attention to risk communication.
A good method is to regularly include risk communication and it should be top of the agenda in team meetings
4: Consider Both Threats and Opportunities
Don’t consider risks as only threat and get bogged down. Look at positive side of risks too. These are your opportunities. Unfortunately, a lot of project teams struggle to cross the finish line, being overloaded with work that needs to be done quickly. This creates a project dynamic where only negative risks matter.
5: Clarify Ownership Issues
You should not restrict yourselves to identifying the risk. The ownership has to be fixed from the day one. The risk owner is the person in your team that has the responsibility to optimise this risk for the project. The effects are really positive. At first, people usually feel uncomfortable that they are actually responsible for certain risks, but as time passes they will act and carry out tasks to decrease threats and enhance opportunities.