Risk Mitigation

Discussion Question 1

Describe what needs to be done to manage risk on a project.
• When should this be done?
• How can a risk assessment matrix help in this process?
• What risks for a project have the highest priority?
• Does the priority for a risk change as the project progresses?

ANSWER

Managing Risk

Risk and other uncertainties are part of all project schemes; however, there are techniques designed to control these risks. An effective risk management procedure is useful in dealing with the project’s risks in a proper and detailed way. Things that should be done to manage a risk engage identifying, evaluating, controlling, and responding to the project risks. These aspects should be done in the early stages of designing a project that will serve as a guideline in managing the project. A risk assessment matrix is a mechanism that controls risks and assists in proper planning of a project. The risk matrix will be significant in this process; it depicts the likely problems that might hinder the project and allow the organization to design a mitigation strategy and increase the decision-making process. The mechanism should be available in the early stages of project management.

High-risk projects are highly visible, having an effect inside and outside the institution and pose enormous problems to the project team’s effort to deliver successfully. Project risks can be grouped into three groups, such as value, performance, and schedule problems. The seriousness of a particular danger will rely on the nature and level of the possible final consequences and the probability of reoccurring. However, project deferral risks are of a high priority since they are linked with the general failure to do a project. While the project is in progress, priorities can change; this is possible when the overall value of completing the project is more than initially planned and when the project’s likelihood of meeting its primary intention is reduced.  These are the main factors that can lead to project priority change and other significant aspects of the process.

References

Markovic, I. (2019). How to use the risk assessment matrix to organize your project better. Retrieved from tms-outsource.com/blog/posts/risk-assessment-matrix/