If you are working on a project, and have been asked to document a risk management process it may appear like a daunting task, but it’s not as complicated as you may have thought. Find out the key components of any risk management process in this mini-ebook...
Documenting a Risk Management Process isn’t an easy thing to do if you are new to Project Management, but it also isn’t an impossible task. Within this ebook you will find some key tips and pointers on how to document your own Risk Management Process, and I will also provide a sample template for your use.
If you use standardised process templates then it will just be a case of fitting in the specific risk management processes, including how to record risks, how to monitor them and who should manage and close them. If you don’t yet have a standard process template then have a look at my How to Document A Process: A Quickie Guide mini-ebook.
In this ebook, you will discover how to introduce a process for anyone working on the project to raise a risk, and how that risk is progressed from the initial flagging stages right through to completion and closure.
The easiest way, and one of the most efficient ways to record risks is by using a Risk Log. Again, if you have had previous experience in recording and tracking risks but just need to know how to document the process then you will be well aware of risk logs. If you are completely new to the whole process of risk management don’t worry though, as I will be as detailed as I can be and aim to include everything you need to know to get yourself up and running. A template is included in the ebook.
If you do finish this ebook wanting more detail then I do have a more comprehensive document titled Managing Risk: How to Write a Risk Management Process which steps you through each area.
Documenting a risk process is something every business should do, particularly if running a project of any kind. The point of having a Risk Management Process is to encourage people involved in the project, known as stakeholders, to raise any queries they may have so these queries or potential risks are assessed by all involved.
There are different types of Risk Management, from Financial Risk to Operational Risk through to the topic that will be focussed on in this ebook; Project Management Risk.
When you think of risk you may wonder what would qualify as a project risk. We will discuss this further as we develop the process, but essentially if you think of anything that could be detrimental to the project finishing on time, or something that could impact on cost or quality, or have a negative impact on benefits, then you are thinking of a risk. Let’s take a couple of examples so we are more comfortable with the words project risk and what they mean:
(1)A significant increase in costs could be considered a risk to the project.
(2)If a software upgrade is imminent this may mean having to upgrade to the newer version, impacting costs and potentially impacting your test schedule.
(3)A task has been identified as taking a lot longer than originally planned, thus potentially impacting the project schedule, particularly if it is on the critical path.
The examples above are potential risks to a project. It doesn’t matter how big or small your project is; you should always have a handle on your potential risks and what they could mean to the outcome of your project.
A Project will always have risks associated with it, and those risks will usually impact one of several things, specifically time, cost, quality or benefits. Each risk should be accompanied by mitigating action to either minimise or close the risk before it impacts on the project.
Hopefully, you will find this ebook a useful addition to your business library, and a useful tool for helping to create a process to manage your risks, be they small or large.
Documenting a Risk Management Process isn’t an easy thing to do if you are new to Project Management, but it also isn’t an impossible task. Within this ebook you will find some key tips and pointers on how to document your own Risk Management Process, and I will also provide a sample template for your use.
If you use standardised process templates then it will just be a case of fitting in the specific risk management processes, including how to record risks, how to monitor them and who should manage and close them. If you don’t yet have a standard process template then have a look at my How to Document A Process: A Quickie Guide mini-ebook.
In this ebook, you will discover how to introduce a process for anyone working on the project to raise a risk, and how that risk is progressed from the initial flagging stages right through to completion and closure.
The easiest way, and one of the most efficient ways to record risks is by using a Risk Log. Again, if you have had previous experience in recording and tracking risks but just need to know how to document the process then you will be well aware of risk logs. If you are completely new to the whole process of risk management don’t worry though, as I will be as detailed as I can be and aim to include everything you need to know to get yourself up and running. A template is included in the ebook.
If you do finish this ebook wanting more detail then I do have a more comprehensive document titled Managing Risk: How to Write a Risk Management Process which steps you through each area.
Documenting a risk process is something every business should do, particularly if running a project of any kind. The point of having a Risk Management Process is to encourage people involved in the project, known as stakeholders, to raise any queries they may have so these queries or potential risks are assessed by all involved.
There are different types of Risk Management, from Financial Risk to Operational Risk through to the topic that will be focussed on in this ebook; Project Management Risk.
When you think of risk you may wonder what would qualify as a project risk. We will discuss this further as we develop the process, but essentially if you think of anything that could be detrimental to the project finishing on time, or something that could impact on cost or quality, or have a negative impact on benefits, then you are thinking of a risk. Let’s take a couple of examples so we are more comfortable with the words project risk and what they mean:
(1)A significant increase in costs could be considered a risk to the project.
(2)If a software upgrade is imminent this may mean having to upgrade to the newer version, impacting costs and potentially impacting your test schedule.
(3)A task has been identified as taking a lot longer than originally planned, thus potentially impacting the project schedule, particularly if it is on the critical path.
The examples above are potential risks to a project. It doesn’t matter how big or small your project is; you should always have a handle on your potential risks and what they could mean to the outcome of your project.
A Project will always have risks associated with it, and those risks will usually impact one of several things, specifically time, cost, quality or benefits. Each risk should be accompanied by mitigating action to either minimise or close the risk before it impacts on the project.
Hopefully, you will find this ebook a useful addition to your business library, and a useful tool for helping to create a process to manage your risks, be they small or large.
