Project managers love to talk about the importance of risk management, but in reality very few of them actually manage risks. According to Pmhut.com, the reason is often a bad previous experience. They tried to pursue risk management, but achieved no success. What are the most common mistakes?
A basic mistake related to risk management, but also to entire projects, is a project manager's inability to lead by example. Project managers and sponsors should ensure that their behavior shows the need to overcome the fear of change and start learning how to exploit opportunities. If you want your people behave in a certain way, you have to behave that way yourself first. Then avoid the following mistakes of risk management.
1. No assessment of the seriousness of the risks
Identifying risks is not enough. You have to assess which of the risks are the most serious ones to focus on.
2. Risk management plans tailored to a different project
If you use a risk management plan originally created for a previous project, make sure that the objectives and scope are suitable.
3. One-time identification and assessment of the risks
Risk management is a continuous process. Risks must be identified and assessed in the course of the changing project environment.
4. Late assessment of the risks
Risks must be identified and assessed as early as in the planning stage of the project. If you are waiting for the moment when things get out of control, it is too late.
5. Insufficient involvement of important stakeholders
The project manager should ensure communication with all key parties involved in the project. All participants should know about the project's development, new strategies and processes to be able to assess the risks.
6. Inadequate transparency
The project manager should not keep any risks secret. Instead, he should talk about the risks with his team and look for solutions together.
7. Inconsistent description of the risks
Do you understand the risks if you read your statements after some time? Follow the rule of describing the risks as: cause-risk-implications. Try the "5 Whys" method.
8. Not measuring the effectiveness of the steps taken
Once you take any action to eliminate risks, it is necessary to monitor whether you are reaching the goals you have set.
9. No division of responsibilities
It is rarely possible for a project manager to manage all the risks himself. It is much more effective to give certain team members the responsibility of owning individual risks according to their expertise and abilities.
10. Forgetting the project goals
In the course of everyday work, we often forget why we do what we do, and even what the original goals were. A project manager who wants to minimize his project's risks should constantly remind all stakeholders of the project's objectives.
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