A Guide For Collaborative Risk Management

Risk and uncertainty are inherent parts of every project. Risks are the primary reason why many large technology projects run into trouble. According to studies, nearly half of all IT projects overrun budgets and deadlines. However, there are ways you can mitigate risk. Risk management works best when all team members collaborate and share their knowledge and insight. In her blog, Susanne Madsen shares steps to collaboratively manage risks.

Why Is Collaboration Crucial?

“When risks are identified, analyzed, mitigated, and planned in collaboration, not only are more risks identified, accountability, and ownership are also reinforced,” says Madsen. Project managers must assign the right owners and gain their buy-in while managing risks.

How to Collaboratively Manage Risks

Identify Project Risks

Brainstorm potential project risks with key team members and stakeholders. Furthermore, consider the essential factors required for project completion. Ask team members about their concerns or any potential problems. Identify risks related to project requirements, budget, suppliers, resources, and technologies you can think of.

Determine the Impact

Identify how likely the project risks are to occur (on a scale from 1-5) and determine the impact of each risk on project success. For example, a likelihood of five could mean that risk is certain to occur. Such project risks will undoubtedly cause delays.

Estimate the Cost

Once you have identified the risk, determine what you will do to address each risk. Then, estimate how much it will cost you to do so. Provide a range of estimates—best and worst cases. Add the aggregated cost of these risk responses to your overall project estimate as a contingency.

Assign Risk Owners

Assign an owner to each project risk. Ensure that risk owners have the skills to handle risk and monitor it. It can be anyone from the steering committee or within the team. Collaborate on the best possible actions that must be taken.

To read the original article, click on https://www.susannemadsen.co.uk/blog/six-steps-to-managing-risks-collaboratively.

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