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Risk management as an integral part of professional project management

Well-organized, competently implemented risk management often makes the difference between the success or failure of a project.

 

No matter how - seemingly - small and simple or how - admittedly - complex and extensive your project is, it always involves a multitude of risks. You may already know some of the risks at the beginning of the project. However, experience shows that most problems only become apparent in the course of your project.

Professional risk management enables you to recognize these risks in time and to react to them.

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The reason for risk management in the project

The reason for risk management in every project is the unavoidable project risks.
These include all events that influence the course or goal of the project and thus change the time, budget or quality targets.

A distinction must be made in particular:

The entrepreneurial risks

Business risk includes, for example, a shortage of resources caused by a lack of employees or employees with the wrong skills. This shortage of resources and skills directly affects the project outcome, as the tasks cannot be completed at the agreed time and in the specified quality. Budget shortages can also occur in the course of business operations.

The economic risks

These include, for example, a successful marketing campaign by a competitor that better appeals to customers in the market or the sudden loss of important customers that leads to lost sales.

The technical risks

This can be the failure of technical equipment or a disruption in the logistics chain that affects your production process.

The legal risks

Even if the utmost care is taken, legal disputes, which cost you time and money, can hardly be avoided.

The external risks

These are the factors on which you have no - or hardly any - influence. These include, for example, severe weather, unexpected political developments or attacks by the media.

The basic task of risk management is to recognize, analyze and monitor these risks in order to be able to react to them in the best possible way if the worst comes to the worst.

 

The 7 most important steps and phases of risk management in the project

Successful and targeted risk management in project management can be divided into the following seven steps:

The identification of risks

This involves the assessment of the possible sources of danger. It is helpful for you to draw on and see the experience from comparable projects,

  • which developments have so far influenced
              such projects,
  • which problems have surprisingly arisen and
  • which have already been initiated in advance.


The assessment of the risks

Not every risk is actually decisive for the success of a project. Evaluation is therefore there to set priorities and then focus on the risks that

  • are highly likely to occur, or
  • can cause big damage.


The development of solutions

Prior risk assessment is crucial in developing the appropriate strategy to best manage the hazards.

  • The risks that can cause major damage should
              be avoided as far as possible
  • There are also other risks for which it is
              sufficient if the probability of their occurrence
              - or their impact - is reduced
  • However, there are also factors that are of
              little importance or very unlikely. These
              dangers can be simply accepted in project
              management in risk management

The definition of the measures

For those risks that cannot be accepted, you should define effective and quick measures in the project risk management. You can take these measures if the risk occurs.

The implementation of the measures

It is very important for you to define a clear responsibility for the implementation of the solutions. This means that in a critical case, the right person - according to the defined procedure - will immediately counter the risk.

The impact review

If the risks have actually occurred, it is highly advisable to subsequently verify the effect of the measures taken. This helps project risk management to further develop, improve and optimize its approach.

The monitoring of risks

The internal assessment of individual risks can change over time. This may be because the probability of occurrence has increased. However, it may also happen that the expected damage could become greater than assumed. For this reason, it is very important for risk management in project management to monitor known risks and reassess them at regular intervals.

From now on, every project will be a successful project!

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The solutions of Can Do for successful risk management in projects

Modern projects are often complex, multilayered and extensive. This is true even when originally there seemed to be only one simple task to complete. Therefore, it is advisable for you to rely on stable, mature project management software  from Can Do.

Whether for classic, hybrid project management, agile project management or even multi-project management, Can Do offers comprehensive project management tools that make project risk management safer, faster and easier. Especially the lack of resources and skills can be optimally counteracted with the Can Do software for professional risk management. Can Do's risk management software maps the existing or - if planned early - the expected shortage in real time. Based on this knowledge it is easy for you to initiate further training or recruiting processes in time.

Conclusion

Professional risk management is of utmost importance for every project. It often decides between the success or failure of the entire project. That is why it is very important to choose the right partner who - with his knowledge and experience - will support you in the best possible way.

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