Project Risk Management: Which Risk Tops Them All?

Project Risk Managemt: Which Risk s Them All?

Near the beginning of the project, we create a project charter documt. The purpose of this documt is to outline, in no uncertain terms, a high-level approach to all aspects of the project. This outline includes critical areas like what the project is all about, who will participate, what the product of the project is, budgetary consideron, and more.

These are all critical, and I outlined them in detail in my second article in this series. In fact, reconsidering all of the elemts of the project charter from a risk perspective sures that you are thinking about inhert risks in every area of the project, abling you to think more bly and more thoroughly.

However, in the final analysis, there is one risk that still stands ae all the rest…

the purpose of your project? Why are you doing it? What results do you hope to achieve? How is the project supposed to change things for your organizon?

These as a whole constitute the “million dollar question.” You really should not ev move forward with the project until you have a ssfactory answer!

However, simply having that answer, while a great step, is akin to having a list of sted risks at the beginning of the project. You need to use the list on a regular basis to really monitor your project and idtify as early as possible if there is an issue.

Indeed, your biggest risk is that your project will not achieve what it was supposed to achieve! You must monitor progress toward that d throughout the project! It requires diligce and a bit of a differt mindset, but you must, able all else, move your project toward realizing its purpose. If that is in jeopardy, it is your job to report that –and pottially change direction.

You may be familiar with the balanced scorecard approach to managemt. It takes the strategic drivers in key areas of a business and constructs a scorecard that is reviewed regularly to sure the business is going where it needs to go.

With projects, the problem is esially the same. While it’s one thing to sure that the project is achieving adequate quality within the prescribed timeframe and within budget, it is an tirely other thing to sure that the project is on track to achieve the strategic impacts to the organizon. The key is to idtify that key strategic objective, find a way to measure it, and monitor progress toward it by using that metric throughout the project as part of the risk managemt process.

Indeed, your biggest risk is that your project will not achieve what it was supposed to achieve! You must monitor progress toward that d throughout the project! It requires diligce and a bit of a differt mindset, but you must, able all else, move your project toward realizing its purpose. And if that is in jeopardy, it is your job to report that –and pottially change direction.

Project Risk Managemt: Which Risk s Them All?


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