Risk professionals dealing with projects are aware that the numerous elements of any project mean that the possibilities of risk are virtually unlimited. A suitable project risk management framework may be applied for this task but the project manager still has the unenviable task of drawing up alternative or contingency plans and mitigative measures for faltering projects.
When it comes to contingency plans, project managers can go through different scenarios that would have been documented in previous projects to determine how much to set aside to deal with such issues. A risk like a natural disaster may be unavoidable; or a workers’ strike may disrupt delivery of certain parts, delaying production. Project costs may be at risk in cases like these. A project manager can foresee such issues and set plans in place to mitigate them, investments can be repaid according to schedule or earlier, and profit margins maintained.
But it is also worth noting that not all risks that confront the project are negative. Some examples of risks which initially appear to have a negative impact, may have positive end results, such as staff in pivotal positions leaving in mid-project. If, for instance, all protocols have been followed, and team members are all up to speed and aware of their project risk management roles and responsibilities, it may not be difficult for other members to step in if one leaves. What then results is an expansion in the experience of the other team members, making them more valuable for future projects. It pays for project managers to involve everyone in project risk management plans from the beginning.
Input from as wide a range as possible, provides much-needed perspectives throughout the project life cycle. Project risk management includes risk assessment and mitigation; these have to be reviewed and revised throughout the project because it is continuously evolving. Understanding where risks could occur is therefore imperative to team members, who need to be clued in and up to speed on the latest project developments. Project risk management is therefore an ongoing activity, not a one-time action. Its successful implementation will determine how much value the project creates for the organisation.
29 The IERP® Monthly Newsletter September - October 2021