A risk is an uncertain event or condition which will affect the objective of the project if it occurs. Risks usually happen in every project and those should not be left as they affect the whole project.
Risk management is the process of identifying, analyzing and limiting the risks in the project life cycle for keeping the project on track and in meeting the goals of the project.
In every project risk management should be given importance and steps should be taken to mitigate the risks
Below are the steps to be taken for managing the risks:
- Creating a risk register – create a risk register and log all the risks that are identified or could be identified in the future
- Identifying the risks – The next step is to identify the risks. Brainstorm with your team members and all the important stakeholders in identifying the risks that could affect the project’s goal. Ask for everyone’s ideas and value their ideas by registering them in the risk register.
- Identification of Opportunities – The next step is to identify the opportunities in limiting the identified risk. Identify all the ways that would affect those risks to your project in a positive manner.
- Determining the likelihood of the risk – Find out the occurrence of the risk on a scale and prioritize them according to the occurrence.
- Determining the Impact of the risk – Now determine the impact of each risk and see how much is the project going to affect by that risk.
- Responding to the risk – Focus on the risks that have the highest likelihood and impact and identify the tasks to do to lower the risk by going to the root cause of the risk.
- Estimate the risks – Estimate how much effort and budget is needed to overcome the risk in case of occurrence and add the costs to the overall budget of the project.
- Assign Owners – Assigning the roles to the owners is a vital role. The owner should be chosen in a way that he should be able to handle the risks.
- Review risks
- Report risks