In the previous article we have seen how the risk can be assessed for a project, but how you respond to these risk events is also equally important. Below we present some steps to respond to risk events: –
1. Risk tolerance levels:
It is very important to understand the risk tolerance levels for a project. As a project manager, you can expect certain risks to occur & respond to them. In some cases, the risks associated are too high & constant reviews. In such cases you must discuss all possible outcomes of responding to the project risks. Furthermore, every stakeholder must be kept in the loop about the steps to handle the risk and the tolerance levels must be within the constraints of the project scope.
2. Handle risk events by priority
The probability & impact of a risk event decide the priority in which it must be handled. Furthermore, the risk events may be a combination of high and low probability & impact. It is always better to use a risk matrix to identify which events need your attention as this would also help you know what are the risks you can tolerate.
Eventually, the risk events with high probability & impact for a project needs the most attention. These have the potential to destroy a project & lead to failure. This can have a bad effect on the company’s reputation & lead to lack of trust from the client.
3. Be alert for “risk” signs
While working on a project, you can expect something unexpected to occur and the signs will be evident before the risk impacts your project. Furthermore, look out for these signs & take steps to safeguard the project. Let us quote with an example; a risk sign can be adverse weather conditions in a particular city for a project team.
Few examples can be; If there is an indication that the weather can worsen and affect resource mobility, then it is a risk. Furthermore, the team members will not be able to report for work & this can disrupt normal work flow; If power is not available, then systems don’t work. This is also a risk.
4. Action plan & documentation
Identify, different risk events as per the high priority & make an action plan to tackle them and the most effective response will be one where the workflow continues in spite of risk events. Eventually, the action plan must detail what steps must be followed during any emergency and all the stakeholders must be kept in the loop for any decisions made during this period.
Thus, when the project handover is complete, document the action plan as it would help you to review how the project risks were handled & eventually what steps you can take to improve them. You may also like to read about project documentation.