Anything with the potential to disrupt the timeline for completion of your project is a risk, and professional project managers are experts at eliminating such disruptions as much as possible. It requires experience to identify potentialities and plan ahead in order to minimize cost. In essence, project managers proactively identify, categorize, prioritize, and plan for potential risks rather than taking the significantly more expensive approach of simply reacting to various crises as they come along. Just ahead are seven strategies project managers use to mitigate risk.

1-Devise a Risk Register

A risk register is the common mechanism project managers utilize to manage the risks involved with a particular project. The risk register is rarely identical on two projects since each has its own unique parameters. Based primarily on past experience and brainstorming, risks are identified and collected in the risk register. Specific risks are logged, described, and assigned a general level of likelihood to occur. Potential impact is assessed, risk response, action, and status are also included in the register.

2-Identify Risk

Identification of potential risk on a project is a huge factor in risk management. Team members and stakeholders should brainstorm to identify potential risks. The wheel doesn’t need to be reinvented for each project, however. The risk register for a similar project can be used as a jumping-off point in establishing a risk register. There are many factors that can involve risk and should, therefore, be considered. For example, risks may be related to technology, legal requirements, materials, suppliers, quality control, and more.

3-Consider Positive Risk Factors

Some risks arise because of something positive, such as too many people showing up for an event. Anticipate what could happen on the positive side of things so that you can put an optimistic spin on the “problem.” Plan to exploit such opportunities, and make preparations for an unanticipated degree of success.

4-Gauge Potential Likelihood and Impact

Assign a number between 1 and 5 indicating how likely it is that each identified risk will occur. Next, quantify the potential impact of a potentiality based on such things as how serious a delay it would cause and the cost of such a problem.

5-Plan Responses

As you focus on potential risk, identify strategies for lowering both the likelihood and the impact of each one. Search out the “why” that would lead to risks occurring as part of the proactive approach to mitigating risk.

6-Estimate Cost

Determine an estimated cost for actions you would take to avoid potential risks and to address them if they occur. Estimates should include a range of lowest and highest potential expense.

7-Collaborate, Review, & Report

Assign individuals to take ownership of the various risks. At least once per week, review risks, adding to the risk register any new potentialities that have been identified. Add details of risks that occur on status reports, and seek input and guidance from executives regarding top ten risks.

Contact Weaver Realty Group

Weaver Realty Group provides high-quality project management services for commercial capital improvement, tenant improvement projects, and more. We are a Leed Accredited Professional and Florida Licensed General Contractor. For the best in project management services, call Weaver Realty Group at 904-733-0039 today.