Let's talk about a critical component of Project Management, Risks.
A risk is an uncertain event, assumption or condition that if it occurs, can either be an opportunity or a threat to the project’s objectives. A risk has causes and consequential impacts. More often we are concerned with those that have a potentially negative impact in the project timeline, delivery capability, budget or even benefits. As such, it is important to have proper risk management.
Risk Management is the systematic process of identifying, analyzing, responding and mitigating project risks. Project managers apply this framework to gauge and negate potential problems that may negatively impact the project outcomes.
Risk Management Plan involves the following processes:
- Risk Identification - This is identifying which risks, their characteristics and conditions that might affect the project
- Qualitative Risk Analysis - This is performing a qualitative analysis of risks and conditions to prioritise their effect on project objectives
- Quantitative Risk Analysis - This is measuring the probability and consequences of risks and estimating their implications for project objectives
- Risk Response Planning - This is developing the action plan and strategy to enhance opportunities or mitigate, avoid or accept threats
- Risk Monitoring and Control - This is monitoring residual risks, identifying new risks, executing risk reduction plans, and evaluating their effectiveness throughout the project life cycle.
When dealing with risks, it’s always best to get ahead of the game by having a risk management strategy in the Planning phase of the project. This is to ensure that the level, type, and visibility of risk management corresponds with both the risk and the importance of the project to the organisation.
Now what are the benefits of proper risk management?
Known threats and opportunities are identified and potential impacts understood.
Early warning on priority and urgency of risks and potential impacts.
Clear action and mitigation strategies are agreed, with transparency of expected impacts and outcomes.
Better quality data for early intervention and informed decision making.
Build corporate memory and improved learning for future projects.
Delivery team can remain focused rather than being distracted with unexpected issues.
Focus HQ has a comprehensive Risk Management Framework allowing you to be able to manage your risks effectively and efficiently. It also fully integrates with Issues and Actions modules which make it convenient to manage actions on risk items.
One of Focus HQ’s capabilities to be able to add a Risk using an existing Risk Template. You can select from a list of templates which pre-populate the form fields.
You can check the video below for a walkthrough of the Risks module, and how to create Risks using Risk Template.
Now, if you need to input / update a lot of Risk items, these can be done via bulk upload. It’ll save you enough time and effort. You can do so by importing / exporting a CSV risk file.
Focus HQ also allows you to define your organisation’s Risk Management Framework to help you manage the risk profile of all projects in a consistent manner. Among these include a Risk Heatmap, Risk Categories, Risk Lifecycle, and automated escalation process according to its level of urgency and consequence. All these are configurable and self-serve.
To know more about Importing a Risk CSV file and configuring the Risk Heatmap Matrix (if you’re part of the Central PMO), you can check this video:
Please also visit the Focus HQ Support Portal for more details:
Feel free to start creating Risk items and build the Project Risk Profile in Focus HQ. Start by navigating to the Risk module and follow the video instructions on how to add a Risk item. Also try updating the Risk Item. Then, you can follow the video instructions on how to import / update Risk items using a CSV file.
If you have any other questions, you can reach out to us via the Focus HQ Help or send us an email to support@focushq.com. We’ll be happy to guide you in navigating through these and provide other valuable support.