It is both astute and ironic to read Verzuh's ideas about risk management in today's economic scenario. Uncertainty is the buzz word everywhere. Most people are trying to deal with multiple risks at workplace, home ownership, stock portfolio and general market risks. To stay competitive and profitable, organizations have to systematically manage risks that may arise at various stages of a project. Project management essentially is risk management. A project manager has to constantly look for and be prepared to manage uncertainty. He or she identifies and monitor the known risks as the project progresses. Risk planning is constantly updated as some known risks don't materialise and some unknown risks may occur. Statement of work , budget , schedule , progress and other deliverables change in attempting to manage risks.
The risk management framework lays down the four steps of the process which may be repeated throughout the project. The project manager has to identify and prioritize potential risks and review any previous risks. The next step is to develop a strategy to avoid or respond in case of each of the identified risks. Obviously high priority risks get more attention and focus than the routine and low priority risks.
Risk management comes with its own costs. Additional funding has to be reserved to respond in case a risk occurs.The fourth step involves implementation, continuous monitoring and communication to the stakeholders of the project.
No comments:
Post a Comment