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Risk Management: Mitigating Risk and Uncertainties to a Successful Project

According to Wikipedia[1], the term ‘risk’ is “the potential of gaining or losing something of value” and can also be defined as “the intentional interaction with uncertainty”.

Regardless of the hierarchical level we occupy in a company, we are submerged in uncertainty that can be characterized as a risk for a given activity, project or investment. Therefore, it is necessary to carefully examine the environment in which we operate and their variables and only then to mitigate the identified risks, and anticipate situations that may cause damage or prevent the achievement of goals.

Extending the concept of risk and applying it to risk management, it can be said that the management of risk should be conducted with the best practices and methodologies known at the moment that the management process is taking place.

Based on this reported concept and directing for the scope of project management, neglecting the survey and risk management can result in irremediable disaster that, in turn, can lead to the failure of a given project and immeasurable losses for all stakeholders.

Another reason that one should consider is the fact that each project has its own identity and complexity, making it difficult to use a standard and, therefore, generating the need to build up personalized approaches according to each project.

From this premise, there is not a single path to all projects, which makes it interesting to carry out an impact mapping for each, creating a qualitative and quantitative assessment for each item raised.

The impact mapping is a useful tool that allows the user to measure several factors, among which stand out the importance of finance and possible deadlocks to reach to deliver the agreed outcome for the project. These points are carefully monitored and often draw stakeholders’ attention.

After an elaborate survey which indicates the levels of importance and criticality, it is possible to direct the team efforts, meeting the expectations of sponsors and avoiding deviations and thus to ensure a project’s success. It is then recommended to proceed in the analysis of the highlighted items, such as risks, and point out the necessary measures to mitigate and/or remediate each element defined as a threat.

After all these displayed activities, which are part of the project risk management, it may be hold an exhibition to stakeholders and members of the team involved in projects with the aim to keep all involved aligned and aware of its duties and to ensure the project’s success.

A team demands for guidelines to head in the right direction – and it depends directly on the transfer of knowledge-, raising the probability of correct answers and reducing the chance of movements that will result in financial loss and/or failure to comply with certain tasks. It is important to emphasize that a united team, cognizant of their common goal, has ample opportunities to stand out and achieve the goal end.

In the face of all the above, it is of extreme value to recognize the importance of risk management and not to neglect their need and importance because the success of a project is strongly related to its proper implementation.

Finally, I would like to emphasize the existing material in the course of “Project Risk Professional” offered by ProjectManagers.Org, which stimulates research and amplify the knowledge of risk management.

[1] Wikipedia: Accessed in 09/07/2016.