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.
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:
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.
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.
This can be the failure of technical equipment or a disruption in the logistics chain that affects your production process.
Even if the utmost care is taken, legal disputes, which cost you time and money, can hardly be avoided.
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.
Successful and targeted risk management in project management can be divided into the following seven steps:
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,
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
Prior risk assessment is crucial in developing the appropriate strategy to best manage the hazards.
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.
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.
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 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.
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.
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.