This article clearly indicates some steps for proper risk management in projects, which can be used in any type of organization and for any type of project.
Thus, if Risk Management is the Achilles’ heel of your projects, we invite you to accompany us step by step in this guide and thus guarantee successful risk management that allows you to adopt a predictive and non-reactive posture.
- Risk planning
The first step is to decide how risk management will be planned for the various project activities. In this step, it is key to define how the risk identification, analysis, response and monitoring activities will be carried out. The main risk management methodology to be used is the Stakeholder Analysis. This analysis is a process that consists of systematically collecting and analyzing quantitative and qualitative information, in order to determine which particular interests should be taken into account throughout the project. It allows identifying the interests, expectations and influence of the interested parties, and relates them to the purpose of the project. Also, it allows determining the risk appetite of those interested in the project, that is, the degree of uncertainty that they are willing to accept to obtain a possible reward in the future.
- Risk identification
In the identification of risks, the risks that could affect the project are determined and the main characteristics of each of them are documented. The techniques used to carry out this stage are mainly:
Brainstorm
This group technique can be consolidated as a risk management methodology that allows us to identify risks with multidisciplinary teams external to the project. An expert facilitator can help participants stay focused on the risk analysis task, accurately follow the method associated with the technique, reach consensus on identified risks, probability and impact assessments, identify and overcome sources of bias, collect lessons learned, and resolve any disagreements that may arise.
The Delphi technique
Technique in which the members of the group are physically separated and a general coordinator contacts all the members to give their opinion on potential risks, maintaining the anonymity of those involved. The coordinator informs the participants of the reasons that justify different opinions about the risks identified and asks them to re-evaluate their response to deepen the analysis. This risk management tool should continue iterative feedback until there are no more changes to make.
Root Cause Analysis
Technique used to identify the main causes of risks. It is a risk management methodology that serves to structure group discussions on the possible causes raised and its main objective is to get to the bottom of the specific risk, discarding the most immediate and superficial responses.
- Qualitative risk analysis
In this step, the impact and probability of the identified risks are evaluated. Risks are prioritized according to their potential impact on the project.
- Quantitative risk analysis:
In this step, the probability of each risk and its consequence on the project objectives are analyzed numerically. It is carried out for prioritized risks that present a significant potential to affect the fulfillment of the project objectives.
Actually there are other stages but the 4 above are the basis of risk management in each project.