10 Golden Rules of Project Risk Management

If you are planning to ever lead a project this article is an absolute MUST read! It provides the 10 golden rules for the application of risk management in every project. Based on the author’s personal experiences of over 15 years, the article discusses how to deliver on time, on budget, meeting sponsors’ quality demands.

Rule 1: Make risk management part of your project

Risk management tools should not only be part of daily operations, but also included during meetings or staff training.

My 2 cents…It would be almost ignorant to not include risk management in a project. You would simply be setting the project up for failure.

Rule 2: Identify risks early in your project

The author points out two main sources to identify risk: people (offering personal experiences and expertise) and paper (project plan, business cases).

My 2 cents…Identifying the risks either through human capital or documents is the first step. Dealing with them timely and properly is the real challenge during a project with multiple phases.

Rule 3: Communicate about risks

Communication should be a component in every task carried out during the project. By having a dialogue as these arise, the team will have a chance to discuss and handle.

My 2 cents…Communication! Communication! Communication! It is absolutely critical to communicate risks with all stakeholders as they arise to help prevent disasters later on during the project. If you are not sure of the whole impact of a risk, bring it up during a meeting. There is nothing worse than foreseeing an issue, not addressing it to later be faced with irreversible consequences.

Rule 4: Consider both threats and opportunities

Many project teams group opportunities under the risk category when in fact these might be ways to help improve the project. Overloaded with work and pressured to meet deadlines, projects with decent pay-offs are bypassed.

My 2 cents…Once on a project, the marketing director asked me to write my own SWOT analysis (Strengths, Weaknesses, Opportunities and Threats for those without a marketing background). I thought she was crazy and undermining my skills since I was fresh out of college. The project ended up being one of the best ones I was a part of because my knowledge and experience were used in the correct phases or milestone tasks.

Rule 5: Clarify Ownership Issues

Someone needs to be held responsible for certain tasks and be prepared to deal with them and take ownership. Simply writing down a list of the potential issues isn’t enough especially when money is at stake and someone will have to empty their wallet?

My 2 cents…Clarifying ownership is critical for the success of a project. If team members are not held responsible for individual tasks or risks, the project will be doomed for failure as fingers will be pointed left and right.

To read the remaining five rules, please refer to the article https://www.projectsmart.co.uk/10-golden-rules-of-project-risk-management.php

Which one of the rules do you find most important for the success of the project and can you think of any in addition to his list?

Thank you for reading my blog!