Recall a project that you considered at one time and decided against during the initiation phase because the risks are too great or the mitigation plan was insufficient to proceed, while project failure risk can never be fully accounted for, it can be mitigated and controlled throughout each stage of the project, hence, risk identification is also concerned with opportunities (positive outcomes) as well as threats (negative outcomes).
Assist the project manager, the project team, and the stakeholders with identifying, describing, evaluating, treating, controlling and reporting any risks associated with a project, identifying, evaluating and treating risks is an ongoing project management activity that seek to improve project results by avoiding, reducing or transferring risks, thus, measures along the level of uncertainty or the level of impact at which a stakeholder may have a specific interest.
Risk management is activity directed towards the assessing, mitigating (to an acceptable level) and monitoring of risks, predetermined risk factors, knowing which risks are worth taking, and which are guaranteed to sabotage project success, thereby, industry performance in executing complex projects continues to be a challenge and, overall, disappointing.
There may be issues at the executive level which appear to require more strategic choices, issues at the organizational levels which require resources to be sorted out, or issues at the project development stage which require material, design, and technology to solve, project risk control and risk monitoring is where you keep track of about how your risk responses are performing against the plan as well as the place where new risks to the project are managed, generally, the last step in risk management is controlling of the risk management activities that involve implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.
Cost risk, typically escalation of project costs due to poor cost estimating accuracy and scope creep, proper risk management is control of possible future events that may have a negative effect on the overall project, thus, to improve outcomes, despite often lacking the time and the resources required to practice risk management, project managers must find ways to integrate risk mitigation tools into their project approach.
An approved risk response plan is a milestone for the risk manager as completing the risk management overall strategy, regardless of your personal connotation of risk, every project manager needs to get comfortable planning for and confronting risk head on by creating a risk management plan. And also, without assessing all risks and appropriate mitigation strategies, most projects are doomed to fail.
Planned and systematically adopted risk management procedure throughout the ERP project reduces the possibility to risks occurring, develop a risk mitigation plan for the most important risks to the project as defined by the risk management strategy. Equally important, you can create an issues log by hand, build your own spreadsheet or database, or buy issue management software from a wide variety of vendors.
Business strategy sits at your enterprise or executive level, and risk management usually functions at a tactical and operational level, risks are possible events that can impact resources, processes, technology, or project participants during the system development lifecycle (SDLC). To say nothing of, therefore, each anticipated risk must be documented, and risk response strategies for each risk must be planned in case a risk occurs.
Want to check how your Project Risk Management Processes are performing? You don’t know what you don’t know. Find out with our Project Risk Management Self Assessment Toolkit: