According to PRINCE2, project risk management to be systematic and include the ‘proactive identification, assessment and control of risks that might affect the delivery of the project’s objectives. A risk management system sees program and project assurance as integral to mitigating project risks.
A Project Manager needs to define how to manage business risk by developing a risk management plan. A documented risk management plan will be created to define certain risk approaches. This is a reference tool provided to the business as Best Practice standards moving forward.
We support project managers to:
- Developing a risk management procedure that define how each step will operate
- Defining the risk tolerance threshold
- Selecting tools or techniques to be used
- Categorising risk and severity
- Identifying your record keeping requirements
- Roles and responsibilities outlined of each stakeholder
- A contingency outline of risk budget
Following the processes and procedures defined in the previous step, the role of the Project Manager is to then define what risks may affect the project and documenting such characteristics.
We will assist to
- log a risk register for subsequent management control and visibility
- Identify causes
- Measure likelihood of each event
- Forecast effect of the risk on the project
- Maintain the repetitive process
- Review and re-defined the risk management plan if it requires
In order to determine which of the identified project risks require subsequent management – an analysis of the threats and opportunities is required to be undertaken in a form of assessment.
What we can do for you:
- Perform qualitative risk analysis and prioritises project risks by combining the probability of occurrence and the risk impact
- Risk assessment
- Quantitative risk analysis by assigning weight to each risk based on probability and potential impact the risk can have on the project
- Highlighting whether further management is necessary
- Updating the risk register
Risk response planning takes the evidence collected to date from the risk register and for each threat and opportunity that has been identified as falling within a certain range of risk tolerance threshold, the Project Manager will determine one or more viable risk responses.
We will help to develop options and actions that will enhance opportunities and reduce threats to project objectives.
Monitor and Control
Throughout this process the Project Manager is continually alert to identifying risks, monitoring risks and executing appropriate response plans.
We support the Project Manager to manage risk within their projects in a systematic manner:
- To ensure that threats have a reduced effect on the project outcome
- To improve the likelihood of gaining from certain opportunities along the project life cycle