Risk Management Control: A Real Progression in Project Management
These risk monitoring and control forms the very heart of project management. The risk assessment project is systematic in tracking, reviewing, and taking action on risks with a view to preventing adverse effect on project objectives. The sections below provide a comprehensive view of risk monitoring process coupled by control with reference to examples.
Risk Monitoring and Control
Process
1. Risk Identification:
The very first step in the process is risk identification and analysis which has to be documented in the same. Various types of sources availability bring risks to the parties e.g. external factors, changed scope, or stakeholder-related issues.
Example:
Potential risk attributed to adverse weather conditions was identified during construction in a building.
2. Risk Assessment:
Once a specific risk is identified, it will likely be evaluated on both its impact and potential effect. Tools like the risk assessment matrix help prioritize severity.
Example:
High impact could be considered on a project schedule, but with average probabilities.
3. Risk Response Plan:
To respond effectively to risks, response plans have already been developed using the response planning process. These responses may involve effective mitigation strategies, contingency options, or the acceptance of the risk.
Example:
For the risk of adverse weather, the response plan might consist of: – Adding buffer time during favorable weather periods – Renting climate-controlled workspaces – Accepting minor schedule delays if impact is minimal.
4. Monitoring Risks
To continually monitor and track risk so that progress can be assessed over time. Monitoring is essentially looking at indicators that would suggest a response might be needed.
Example:
In the projects, a project manager has to always check the weather forecast and compare it with the threshold as defined in the risk response plan.
5. Risk Management
A risk that has exceeded the threshold determined will undergo a proper response. Activation of mitigation measures contingency plans or correctional actions.
Example:
In harsh weather conditions, the project manager would change the construction schedule, add resources, or transfer some work to indoor facilities according to the contingency plan.
6. Communication
Appropriate communication should go hand in hand with risk monitoring and control processes. Stakeholders regularly receive updates about the status of the risk and the actions taken.
Example:
Monthly updates about weather-related risks created by the project manager, the mitigation techniques being adopted, and their likely effects on the schedule and budget would be provided to stakeholders.
Thus, it is necessary for ongoing risk assessment and mitigation to be proactive.
Proactive Risk Management
Continuous evaluating provides project managers the chances to come up with effective plans in response to changing risks on a timely basis before escalations into greater problems occur.
Flexibility.
Constant evaluation ensures that the project continues flexible, with greater responsiveness to new risks that may have just emerged.
Cost and Schedule Control.
Avoidance of Schedule delay and Cost Overrun happens when it has been dealt with in its pre-issue stage.
Example:
A project recognizes a certain risk when a main developer is likely to leave after having been recruited by another organization. The company then trains another backup developer. Checks are still ongoing when the company has come up with an offer that the developer is now evaluating. The project manager would set up the plan and assign a task for the backup developer to avoid disruption.
Conclusion
Risk Control and Monitoring is part and parcel of successful project management. Systematic checks, assessments, and responses to risks assist the project manager in safeguarding objectives as well as controlling the result. This ensures that continuous risk assessment and mitigation translate into better flexibility, cost, and schedule as part of the project success.
