Why & How to Manage Risk?

Over the years, working as a project manager, PMO manager and CEO, I have come to the conclusion that in addition to change management, as well as scope, time, schedule, quality and cost management within projects, there is another knowledge area that, when even focused on a bit, proves beneficial to running successful projects and that is Risk Management.

Why is that so?  Because defining potential risks and responding to them, before they occur, may save you a great deal of time and money later on. For example- having a single supplier for a crucial long lead item may be risky, especially if that supplier has a reputation of late deliveries., If you define that scenario as a risk, put someone in charge of solving that issue (“Risk owner”, it may also be you), include a due date for implementing a response or preventive action, you are actually implementing a risk management technique and may improve the probability of project success significantly, simply by identifying and responding to that risk, before the risk “explodes”.

For more tools and techniques, tips and tricks on Risk Management, such as  ”What is a risk register and how to use it”, check out Risk Management  article at Clarizen’s Knowledge Base:

The PMI ® body of knowledge methodologies within the PMBOK®, chapter 11, pages 273-312 also can lead you in the right direction.