Project Risk Management – Strategies to Handle Risk Elements

There is no such thing as a “perfect” system. People can always strive to be close to the standards of perfection that they have set themselves but due to unexpected circumstances, threats may come along the way. One good example is the possible occurrence of an event that will have an impact on the achievement of goals. These are what they call “risk” elements or factors, which can lead to a probable loss or damage. This scenario is very common when big projects are at stake. Risk should always be anticipated during the planning phase to reduce its effects. This is where project risk management comes in.

Risk management involves the recognition of risk, assessing it and developing strategies on how to manage it. Strategies may vary depending on what suits the organization’s profile. In project management, risk is being handled by executing the following activities:

(a) Planning how risk management should be handled in a particular project. It should include identification of risk management tasks, activities and responsibilities.
(b) Assigning a team member who will be responsible for foreseeing possible project problems that may be encountered during the course of completing the project. Aside from a project manager, a risk officer will surely help in carrying out such challenging task.
(c) Maintaining a project risk database where all risk factors or elements were recorded after identification.
(d) Creating a risk reporting tool where all team members can access to report possible risk occurrence.
(e) Preparing a mitigation plan for risks that are chosen to be mitigated and eventually avoid or minimize the possible effects on the project.
(f) Summarizing all planned activities in an effort to effectively employ risk management.