Risk Management

Question

Please provide your inputs as management perspective. What initiatives one should take to make sure every project manager is following risk management processes. I would like to follow Risk Driven Project Management across all projects? what should I do to implement RDPM successfully in my org? What are the approaches?

Answer 1

Risk is a subset of required focuses for a project manager. I don't think that it comprises such a major portion of the project management process that it should drive projects. It's always good to clearly identify risks, and rate them according to likelyhood and impact. However, there are more pressing issues that need attention as well including: schedule, performance, managing shareholder expectations, and budgeting.

Each project will have it's own natural drivers, and in some cases, risk will comprise a major portion of the required project management attention. In other cases, the schedule requires more attention. Placing the focus on risk will detract from the overall success of some projects, while contributing to the success of others.

That being said, if the company's mindset was focused around risk, you could artificially lump all categories into risk and include a risk item for the current status. We use Excel to track risk in a simple spreadsheet that includes sufficient details to outline current risks and planned actions if the risk comes to fruition, or actions to mitigate the impact prior to a risk event occurs. Similarly, you could add an item for 'schedule overrun' whose actions are 'reduce release scope', or 'increase release date', or something similar.

Your best bet is to develop a risk register, and successfully run a project using your proposed technique, and then honestly discuss strengths and weaknesses. Let the other project managers choose to try it, or convince you their techniques may be superior.

Pushing your custom form of project management is a dictorial approach, and will seldom be met with across the board acceptance.

On the other hand, if the company were to change its goals and statement of purpose to be a contracting company aiming for CMMI approval, then you could justify adding a definitive process for all projects across the board.