Control Risks Explained
Control Risks is a critical process in project management that involves monitoring the identified risks, tracking residual risks, identifying new risks, executing risk response plans, and evaluating their effectiveness throughout the project lifecycle.
Key Concepts
1. Risk Monitoring
Risk Monitoring involves tracking the status of identified risks and their potential impact on the project. This includes observing changes in the risk landscape and ensuring that risk responses are implemented as planned.
Example: In a software development project, risk monitoring might involve regularly reviewing the progress of the development team and identifying any new technical challenges that arise. Regular status meetings help in keeping risks under control and making timely adjustments.
2. Residual Risks
Residual Risks are the risks that remain after risk responses have been implemented. These risks may still pose a threat to the project and require ongoing monitoring and management.
Example: For a construction project, residual risks might include the possibility of minor delays due to unforeseen weather conditions, even after implementing a contingency plan for major weather events.
3. New Risks Identification
New Risks Identification involves continuously scanning the project environment to identify any new risks that may emerge as the project progresses. This ensures that the project team remains proactive in managing risks.
Example: In a marketing campaign, new risks might include changes in market trends or unexpected competition entering the market. Regular market analysis helps in identifying and addressing these new risks promptly.
4. Risk Response Execution
Risk Response Execution involves implementing the planned risk responses as outlined in the risk management plan. This includes taking actions to avoid, mitigate, transfer, or accept risks.
Example: For a software development project, risk response execution might involve deploying additional testing resources to mitigate the risk of critical bugs, or purchasing insurance to transfer the risk of budget overruns.
5. Risk Response Evaluation
Risk Response Evaluation involves assessing the effectiveness of the implemented risk responses. This includes measuring the impact of the responses and making adjustments as needed to ensure they are achieving their intended outcomes.
Example: In a construction project, risk response evaluation might involve reviewing the effectiveness of safety protocols in reducing accidents. If the protocols are not effective, additional training or revised procedures might be implemented.
6. Risk Reporting
Risk Reporting involves documenting and communicating the status of risks and risk management activities to stakeholders. This ensures transparency and keeps stakeholders informed about potential risks and their impact on the project.
Example: For a marketing campaign, risk reporting might include regular updates to the client about potential delays and the steps being taken to mitigate them. This transparency helps in maintaining trust and ensuring that all parties are aligned.
7. Risk Audits
Risk Audits are systematic reviews of the project's risk management processes to ensure they are effective and aligned with the project's objectives. Audits help in identifying gaps, inefficiencies, and areas for improvement in the risk management plan.
Example: In a construction project, a risk audit might involve reviewing the risk management plan, interviewing stakeholders, and assessing the effectiveness of risk response actions. The audit results would be used to identify any gaps and recommend improvements.
8. Risk Reviews
Risk Reviews are periodic assessments of the project's risk management activities. These reviews help in ensuring that the risk management plan remains relevant and effective as the project progresses.
Example: For a software development project, risk reviews might be conducted at key project milestones, such as the completion of major development phases. These reviews help in identifying any changes in the risk landscape and adjusting the risk management plan accordingly.