A significant part of successfully navigating projects is how effectively you manage risk, but how much of the risk should fall on the shoulders of the project manager, and what can you do to sufficiently mitigate those risks? Credit: Thinkstock Risks are dependant on a multitude of things and serve as triggers. These dependencies help to identify and measure the impact of the risks; here are just a few of these dependencies. Product and service offerings Client, vendor, sponsor and project team expectations Location Industry norms Buy-in levels Cultural differences Once the dependencies can be determined, it becomes much clearer which of the following risks are likely: Cost overruns Scheduling issues Agreement/contract disputes Technology deficiencies Legislative and legal issues Resourcing levels Other Internal and external environmental concerns etc. Should all risks be avoided? Not all risks can or should be completely avoided. There will be times where this simply can’t be done and other strategies should be considered. Getting to the point of knowing the best strategy can be dependant on many things such as priority, company policies, management outlook, external factors, stakeholder preference etc. To determine the best strategy, project and company leaders, team members and stakeholders should work through the following process. Identify potential risks by first identifying the dependencies that might trigger them. Getting this step right is key to being able to accurately define the points of impact. Evaluate the impact and rate the impact to the project success and overall company goals. Remember the project must ultimately serve a strategic business purpose. Plan for the risk(s) as all projects will come with some risk. Determine the best risk management strategy based on the likely outcome and risk tolerance of the business. Document the dependencies, risks, impact and risk management strategies, reasons for any decisions, the decision participants, and alternate solutions, if any. Monitor and Control the risks throughout the entire project cycle, addressing and documenting any changes. Respond as quickly and thoroughly as possible, communicating and documenting as things change. Revisit dependencies, risks, status and resolutions with sufficient frequency. Identify, discuss and document the lessons learned We are all moving at such a fast pace that there may be temptation to skip this step, but it’s critical for learning, improving and building on what you already know. At the end of the project, identifying, discussing and documenting any lessons learned serves a forward-facing role in being more prepared for the next project. Who is charged with risk management? Again, there really aren’t any lone wolves in risk management, project outcomes impact everyone involved, and this makes each person accountable for playing a role in the execution of the risk management plan. That said, the project manager serves a pivotal role in identifying, documenting, communicating, preparing for, and managing the project risks. Related Video Related content feature Expedia poised to take flight with generative AI CTO Rathi Murthy sees the online travel service’s vast troves of data and AI expertise fueling a two-pronged transformation strategy aimed at growing the company by bringing more of the travel industry online. By Paula Rooney Jun 02, 2023 7 mins Travel and Hospitality Industry Digital Transformation Artificial Intelligence case study Deoleo doubles down on sustainability through digital transformation The Spanish multinational olive oil processing company is immersed in a digital transformation journey to achieve operational efficiency and contribute to the company's sustainability strategy. By Nuria Cordon Jun 02, 2023 6 mins CIO Supply Chain Digital Transformation brandpost Resilient data backup and recovery is critical to enterprise success As global data volumes rise, business must prioritize their resiliency strategies. By Neal Weinberg Jun 01, 2023 4 mins Security brandpost Democratizing HPC with multicloud to accelerate engineering innovations Cloud for HPC is facilitating broader access to high performance computing and accelerating innovations and opportunities for all types of organizations. By Tanya O'Hara Jun 01, 2023 6 mins Multi Cloud Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe