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10 Factors That Affect risk management solution's Longevity

Jun 23

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6/23/2016 3:56 PM  RssIcon


Risk management is a very effective way to manage projects. Good active risk management software reduces risks at specific events by identifying them and proactively taking actions before they occur.


We always see risk analysis as a somewhat cumbersome activity that simply records the risks, and has nothing to do with implementing the project. The top 10 factors that affect the risk management solution's longevity are as follows:


1. "I do not know risk management"

We all know what a risk is, and we’re managing it on a daily basis. But usually we do not see it as "risk management." For example, vaccination protects us from disease. That's risk management: simply identify possible situations and do something to reduce the odds.


2. Risk management is not a part of the work of the project manager.                   

The work of the project manager is to get control of project quality, time and cost. It is necessary to identify, address and resolve anything that prevents this goal. Risk management can do that in a structured way.


3. The risks have to be huge to be identified.

Usually the components of a project team often believe that small risks are not critical. This is a misperception since risks can be of any size, and it may turn into a large risk if there’s no action taken to solve it. It is true that the major risks may require more attention, but that doesn’t mean we can just ignore minor risks.


4. I cannot identify risks because it is a new project.

Start a new project can be stressful, but we can always take advantage of our experience and lessons learned from previous projects. Many people get to work on similar projects and make the same mistakes that they have done before. “Those who do not learn history are doomed to repeat it.” In these cases, risk management program can be used as a database of information from previous projects.


5. Risks are managed only at the beginning of the project.

Risk management is a continuous process, not a one-time activity. If the project team does its job well, the incremental risks that are identified through the life of the project may be lower. It does not mean that there will be no risks at all after initial reviews. As the project progresses, the team needs to continually look at new risks and effectively mitigate them.


6. Risks are managed only when they occur

The idea of ​​risk management is to manage problems before they happen. Once a risk occurs, it is no longer a risk. It becomes a problem. If there is no way to avoid it, then the team must make a contingency plan to handle it.


7. Risk management does not generate value.

This problem stems from the perception that avoiding risks is rarely quantified. However, avoiding the problems itself means cost savings. Even without quantifying the cost, it is worth its weight in gold because you don’t need extra time and effort to make it right. Even if you cannot completely avoid risk, planing in advance about how to respond when it does occur ensures a more successful and less stressful project execution.


8. If you cannot face a risk, then it is better not identified.

The reality is that, once a risk is identified, the team will have to fight through to deal with that risk. It may not be easy to get the solutions, but identifying risk is the base if a successful project.


9. All risks should be mitigated.

It’s not true that there are risks against which you cannot do anything to avoid. Like an earthquake, you cannot help but you can make a plan about what to do if it occurs.


10. There is no need to manage risks if it is a small project.

All projects need to manage their risks, no matter how small it is, as these can affect the ability of the project team to achieve their objectives.

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