A Quick Introduction to Project Risk Management
By Maria Peer
Project Risk management is planning for the possibility that a problem will occur by eliminating the probability that the problem will arise during the project, evaluating the impact if the problem does arise and preparing solutions in advance.
A good project manager measures risks in advance. Even with a clear plan something will go wrong that keeps you from completing the project successfully. Therefore risk and constraint analysis have to be carried out – taking only a few minutes of time in a small project but turning out to be a project of its own in a large project.
Risks and constraints should be documented in a SOW (Statement Of Work).
The goal of the risk and constraint analysis is to establish the feasibility of the project within the economy, politics and laws, and organizational structure that limit your business.
All the risks in a project can be categorised as follows:
- Known risks – risks you can identify by drawing on your or your stakeholder’s experience.