How do you perform risk management in your project?

Now a day’s risk management is the most searched term on the internet. In today’s advanced world we are now in a position to better mitigate the risks in any project. So due to the effects of risks in the projects, we can see the project managers incorporating risk management in every project they work in.

What is risk management?

Risk management is the process of identifying, analyzing, and avoiding the problems that could affect the project’s progress negatively. The main purpose of risk management is to remove the problems and issues that would be a roadblock for the project from reaching its goal. If the risks are not identified properly, they can affect the whole project in over budgeting, delay in progress and even end up in project standstill.

To manage the risks one can follow the below steps:

1. Including risk management in the projects: Firstly, to identify the factors causing a risk to the project, including risk management in the projects and train the employees on how to detect risks in the projects.
2. Communicate the risks: The next step is to communicate the risks to the stakeholders by conducting a meeting or by brainstorming. Through this communication process any stakeholder can identify different risks and the team could be ready to avoid it when occurs.
3. Prioritize risks: while working on projects risks occur of different types. Those can be of high effects and low effects. So always prioritize the risks and work on high priority risks that can halt the complete project and then work on low priority risks that can be manageable.
4. Risk analysis: analyzing the risk is very important after you identify the risks. One risk may seem of low effect but could have big effects if it is not analyzed properly. So analyze every risk type and prioritize its occurrence and impact.
5. Risk response implementation: After the above steps, the crucial part is risk response implementation which includes risk acceptance, risk avoidance, and risk minimization. One needs to accept the risk if the effects are too less or negligible. Avoid the risk by manipulating the project that the possibility to come across that risk is very least. Risk minimization works when you can compensate for the influence of the risks.
6. Tracking the risks: Tracking the risks is very important as you come to know the influence of the risks, its effects. Make a report after project completion and make it as a reference to identify them in the upcoming projects.