10 tips for managing project risk

Do you need some tips on how to avoid your project to fail?

If so, here are 10 great tips that you can use to avoid failure of your project.

  1. All projects has risks associated with them. As a project manager you need to be aware of them and pro-actively make sure that they are removed before they occur.
  2. Risk management requires continuous effort to identify, quantify and eliminate the risks.
  3. Perform risk analysis with the entire team and possibly others that have experience with similar projects.
  4. Collect all possible threats and risks that can effect the outcome of the project. Try to be very specific when writing them down. Make sure to include risks that are related to the context in which the project is executed in, such as stakeholders, funding etc.
  5. Estimate the likelihood that risk/threat occurs
  6. Estimate the consequences of the risk/threat occuring.
  7. Try to answer the following questions…
    • What causes the risk?
    • Which warnings signs do we have?
    • How much time do we have before the damage is done?
    • How can we reduce or eliminate the risks?
    • Can we take any pre-emptive actions?
    • What should we do today?
  8. Create an action plan for those risks that are deemed in need of such.
  9. Present the result of your risk analysis to your customers and stakeholders.
  10. Make sure to continuously make new risk assessments though out the project.

What do you think? Does these tips add value to you? Do you have any other tips on how to manage risk? Let us know and leave a comment!