Take your project career to new heights with AIPM membership. Join now to unlock the benefits of Australia’s leading body for project professionals.
Take the quiz
Join thousands of project professionals across Australia who have powered their career prospects with RegPM™ certification.
The demand for project management skills continues to grow across a range of industries, and professionals are building lucrative and rewarding careers.
For nearly 50 years, the AIPM has been driving project management across Australia.
16th Jun 2020
Author: James Bawtree, Founding CEO & Managing Partner at PMLogic
If a project manager does not undertake regular risk management activities and this process is not sufficiently supported by decision makers, then it may lead to problems when activities and deliverables do not go as planned.
Lack of risk attention can also result in project managers and teams spending more time dealing with issues, impacting the project even further. All of which could have been resolved in advance had the risk been appropriately identified and treated earlier.
So to rectify some of the above challenges, James Bawtree, former Director of the AIPM Board has included five strategies to help you improve your use of risk management and the likelihood of successful delivery of your projects.
Ensure your organisation is following a recognised risk management framework. The ISO3100-2018 is a good starting point.
It is principle based, pragmatic, widely used and is not specific to an industry or sector. This will help when a new staff or team member starts at your organisation, as there will be less of a learning curve.
Make sure risks are captured correctly. For example, using a visual diagram, such as the risk bow-tie is a great way to start.
The template from Julian Talbot provides a useful guide to the bow-tie diagram. It helps with capturing each of the core risk elements. My experience is the controls are often missed and there is often one risk event to one consequence.
Capturing risks is not enough, you need to do something about them. All too often, when I review or rescue programs and projects, a list of risks exists however they are often out of date and no one is assigned actions to mitigate them.
Often the steering committee and/or governance groups are not even aware of the key risks that the program or project faces. So always make sure there is an action assigned to address each risk.
Risks must be re-assessed and “residual risk” ‑ the remaining risk post the risk control ‑ updated on a regular basis. For all but small projects in your organisation, I would recommend this be undertaken on a monthly basis.
A good way to help achieve this is through a digital platform. A quality tool can help you capture, share, and discuss risk status. Project teams will know how often updates are made, plus what has changed including where risk levels are increasing in probability or impact ‑ or both, as they should be assessed independently.
Risks must be reported. So ensure each risk has an owner and a person assigned to do something about the risk.
Report on inherent risk until you are satisfied that you have sufficiently decreased the residual risk to an acceptable level. Continue reporting on both assessed and residual target acceptable risk, and who is taking responsibility.
Take our quick self-evaluation quiz to assess your project experience and help you determine your certification level.
A contract management plan is key to successful contract management. Find out why you need one and how to create one here.
Learn about the contract management process and build your contract management skills with practical tips from a lawyer.
Find out about the range of project delivery methodologies and how you can build robust project delivery skills.