Challenges In Project Risk Management: How To Overcome Them
Even the best laid plans can go wrong; there is never absolute certainty about the outcome of a project. Project risk management should be applied from the very beginning of a project for a variety of reasons. Every project is unique, even if they are undertaken by the same team, and have the same objectives. But what will work for one project, may fail miserably when applied to another. Project team members may find that all the elements that were working perfectly in synch together initially, are now suddenly completely at odds with each other. Project risk management addresses the issues that have the potential to prevent a project from achieving its objectives.
There is no common template when it comes to project risk management, but there are some common challenges. Research has shown that many projects fail because goals – both short- and long-term – have not been clearly defined. Another major barrier is the lack of communication, which sometimes causes poorly-defined goals. Project costs may be underestimated, leading to budget overruns and cash flow problems. Experts also point to poor risk management in projects, and unrealistic deadlines which further stunt project development. Project management teams may not have the right skills to cope with the demands of the project, and may feel overwhelmed, leading to a lack of accountability.
27 The IERP® Monthly Newsletter September - October 2021