How to reduce Project Risk

How to reduce Project Risk

1. Start out on the right foot

Too many projects get started without a solid definition of what must delivered. So always start out by writing a detailed Project details. This document states the project vision, objectives, scope and deliverables. only then, you know what has to be achieved and by when.

2. Make your team accountable

Why should you shoulder all of the responsibility for the project? Instead, pass on responsibility to each member of your team. Tell them which elements of the Project Charter they are responsible for delivering and make them accountable by holding review meetings each week to measure progress.

3. Identify risks upfront

Then hold a workshop to identify likely risks to your project. A risk is an unforeseen event that might negatively impact on the project in the future. Examples of risks are: "that our suppliers might deliver late", "that we might run out of materials" or "that we can't find extra resources when we need them". You need to document every risk and determine its likelihood and impact on the project.

4. Plan risks wisely

With all of the risks known upfront, you're ready to create a Risk Plan. This document will identify actions that you can take now to reduce the likelihood of the risk occurring. So for instance, if your risk was "that we might run out of materials" then strike a deal with a supplier that requires them to make additional materials available when you need them. Or find another supplier as a backup.

5. Monitor risks carefully

As the project progresses, run bi-weekly or monthly risk meetings to review the risks you've identified. Ask these questions: Are the risks likely to occur? Are there any new risks that you face? Have the actions in your Risk Plan been completed? Is your level of risk reducing? only by monitoring your risks carefully, can you control the overall level of risk on the project.

And one more tip to help you...

Keep an open book

Communicate your project risks openly to your boss or project sponsor, so that everyone is aware of them. Don't keep them to yourself. Send them a regular report listing the risks and your plan of action for resolving them.