3.4 Project Risk Management
Risk management focuses on identifying and assessing the risks to the project and managing those risks to minimize the impact on the project. Successful project managers manage the differing perceptions of risk, and the widespread confusion about its very nature, by engaging in systematic risk management. According to the Practice Standards on Risk Management the following are important considerations around risk management success.
Case Scenario
Imagine there are three similar projects. They are to develop the work safety program for different small to medium sized organizations. Assume all three organizations produce the same product or service. While every project is unique, these three projects at first glance seem the same. However, after investigating, there are subtle but significant differences. For example:
The first organization does not have a significant amount of cash. Cost is the highest priority for this project. While the project manager wants high-quality and for everything to be finished on time, he will never overspend in order to achieve these goals.
The second organization has recently suffered a serious workplace accident. The initial budget is the same as the first organization, however managing director of the organization has already said that if more money needs to be spent in order to get the best quality work health and safety system available, they will find the money from somewhere. In other words, quality is the highest priority.
The third organization is trying to implement the work of safety system, in a work culture actively resists change. The greatest challenge to this project will be the competing influences of different stakeholders. The highest priority for this project will be to achieve a successful outcome in an environment that has not yet recognize there is benefit in the project being proposed.