Project management involves everything, and risk management is one of them. The project management should be done in advance risk identification and risk classification, do a good job of responding. risk management is to put forward the disposal opinions and methods of project risk.
Through the project risk identification and assessment, the probability of project risk occurrence, the severity of loss and other factors, estimate the possibility of various risks occurring in the project and the degree of harm, determine the risk level of the project, so as to determine the measures to be taken.
How can you reduce and mitigate risk?
- Learn more about the experience of similar projects
- The project can be fully considered in the study of risk
- By the project experienced managers to prepare the project implementation strategy, and strict implementation
- To establish effective risk response mechanisms
In project management, the biggest risk is "people", can avoid risks is also people. some people engaged in project management summed up the following words: meticulous, communication, progress tracking.
It is impossible to achieve accurate risk prediction in project management, but it is necessary to prepare risk knowledge and learn some risk contingency prediction.
The risk management strategies include mitigation, prevention, transfer, avoidance, acceptance and other measures. according to the different risks of different projects, appropriate measures should be taken to avoid risks, the probability of risk will decrease.
Risk averse
When the potential threat of project risk is too likely to lead to serious consequences and no other coping strategy, actively abandon the project or change the project objectives.
For example, enterprises are currently facing a less mature technology investment projects, through risk assessment found that the implementation of the project will face a huge threat, the project management organization has no measures to control risk, even insurance companies think the risk is too great to refuse to underwrite.
At this time, we should consider abandoning the implementation of the project to avoid huge risk accidents and property damage.
Transfer risk
Refers to the transfer of risk to another person or other organization, with the aim of borrowing a contract or agreement, in risky accidents transfer a portion of the loss to an individual or organization capable of taking or controlling the risk of the project as soon as it occurs.
Implementation can be as follows:
Financial risk transfers, such as banks, insurance companies or other non-bank financial institutions, are indirectly responsible for project risk.
Non-financial risk transfer, transfer of a project-related property or project to a third party, or contractually transfer risk to another person or organization, while retaining the property or project that creates the risk.
Risk mitigation
Risk mitigation strategies are designed to mitigate risks by mitigating or anticipating them, reducing the likelihood of risk occurring, or mitigating the adverse consequences of risk reduction. this is a positive risk management means.
Accept the risk
Accepting a risk strategy is also one of the risk management strategies. when the cost of taking other risk aversion methods exceeds the loss caused by a risk event, the risk-accepting approach may be adopted. this requires that the risk planning phase be prepared for some risks, so contingency plans are implemented as soon as a risk event occurs.
Reserve risk
Reserve risk is based on the project risk law in advance to formulate emergency measures, the development of scientific and efficient project risk plan, once the actual progress of the project and the plan is different, the use of backup emergency measures, projects risk contingency measures there are three main costs, schedule and technology.
The use of project management software can also do project risk management, through the progress cat Gantt chart we can timely understand the project progress, project managers can also timely understand the project members' task progress, when the project member's task progress timeout.
The project manager needs to understand the cause of the task timeout, to avoid a vicious circle of projects.
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