Page 10 - Risk Management Bulletin April-June 2022

RMAI BULLETIN APRIL - JUNE 2022

management process, it is not clearly understood
and a struggle for many companies.

6. Make Risk Management as part of your
project.
Project risk management is the process of identifying,
analysing and then responding to any risk that arises
over the life cycle of a project to help the project
remain on track and meet its goal. Risk management
isn’t reactive only; it should be part of the planning
process to figure out risk that might happen in the
project and how to control that risk if it in fact occurs.

A risk is anything that could potentially impact your
provide guidance regarding the management of risk to project’s timeline, performance, or budget. Risks are
support the achievement of corporate objectives, potentialities, and in a project management context,
protect staff and business assets and ensure financial if they become realities, they then become classified
sustainability. Organizational policies and procedures as “issues” that must be addressed. So, risk
for risk management are like the rules governing the management, then, is the process of identifying,
game of football. In football there are certain pieces categorizing, prioritizing, and planning for risks before
of equipment that a player needs to have in order for they become issues.
the player to be safe while they are playing. Football
also has rules determining what a player may, or may Risk management can mean different things on
not do, during the game so that they remain safe, and different types of projects. On large-scale projects, risk
the other players also remain safe. management strategies might include extensive
detailed planning for each risk to ensure mitigation
Organizational policies and procedures for risk strategies are in place if issues arise. For smaller
management are player guidelines that tell each projects, risk management might mean a simple,
employee what the company they work for expects of prioritized list of high, medium, and low priority risks.
them, and what the company will do to protect them You should have clearly identified time in your
from harm while they are schedule for risk management.
at work.
7. Start identifying risks from initial stages of
5. Continuous Risk Monitoring your project.
Monitoring a risk and relevant issues surrounding it All projects have risks. If a potential risk of the project is
focuses on looking for three things: not identified early, then the project will be at a high risk
a) How the risk is changing. to complete as per schedule, within budget and to meet
The effect those change(s) will have on objectives the expected quality. One of the current difficulties faced
or other factors of the internal or external by a new Project Manager today is not having a sample
operating environment. or general risk list to refer to when identifying the project
risk. Project Risk identification is the most important
b) Whether the organization took enough risk to process in the Risk Management Planning.
achieve its objectives
To say that risk monitoring is important would be Risk Identification determines which risks might affect
an understatement. the project and documents their characteristics.
However, as recommended by [Donna Ritter], we
Without following through on the risks that were
should not spend too much time in identifying risks.
identified, assessed, and mitigated, it is all just a
After the list is made, qualitative and quantitative
one-time exercise.
analysis is done to figure out which risks you spend
Despite the importance of this part of the risk time and/or money on.

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