Risk Mitigation Management

What Is It?

In each project unexpected occurrences demand handling. By preparing possible reaction to those occurrences and later acting correspondingly in systematic way we can significantly reduce negative impact on our project. We call it risk management.

Who Does It?

Each team member should be made sensitive to possible risks. Someone in team shall take charge to lead the preparation and – during the project course – handling of the potential and already occurred risks.

Why Is It Important?

Risks have always negative impact on projects. Their unpredictable occurrence can magnify this negative influence. By analyzing potential risks and preparing the suitable measures we can reduce this impact to the level acceptable to the project customer/sponsor.

What Are the Steps?

At the very first planning, initial risk assessment and detection system shall be done. An evaluation shall lead to the preparation of countermeasures. Upon risk occurrence the prepared action shall be initiated and lessons learned shall be forwarded to Knowledge Management.

What Is the Work?

First the analysis of possible occurrences with negative impact on the project shall be done. Probability of occurrence and impact levels shall lead to some classification. Measures shall be elaborated with regard to the risk as well as its impact and procedures of their application shall be defined. Upon occurrence proper handling is to be adopted, including unforeseen events.

How Do I Ensure That I Have Done It Right?

It is advisable to entrust creative analysts in a team with responsibility for this process. Whole team and, wherever applicable, external people with suitable expertise shall be involved in risk analysis and evaluation. Elaborated measures shall have sound economic justification. Make sure that customer/sponsor of the project fully supports your risk assessment and expenditures for mitigating measures.

The goal of risk management is an economical minimization of negative impact of unexpected occurrences in projects through constant identification and analysis of potential hazardous situations, elaboration and conscious implementation of the chosen precautionary countermeasures.

ISO 21500:2012, in the description of the process 4.3.28 Identify risks, includes also the events with positive impact into the risks under consideration (ISO 21500:2012 2012). However, in the view of the author, positive impacting events are mandatory in planning of the project and upon occurrence in any case to be implemented. As such there are different methods of dealing with both types of events. Therefore, in the considerations of this Chapter only events with negative impacts are further considered here.

Risk Management process prepares possible measures to mitigate potential risk or reduce impact upon their occurrence by systematic risk analysis and assessment of the prepared measures. Upon risk occurrence suitable actions are undertaken. The knowledge gained shall prevent problem recurrence.