| In many projects, risks are identified and analysed in | | | | the project team that manages the project, and/or |
| a random, brainstorming, fashion. This is often fatal to | | | | when key individuals in the original project team leave |
| the success of the project, as unexpected risks | | | | the team during the project, and are replaced by |
| arise, which have not been assessed or planned for, | | | | individuals with different skills, experience, and |
| and have to be dealt with on an emergency basis, | | | | capabilities. The clear message here is that setting a |
| rather than be prepared for and defended against in | | | | Risk Tolerance level is a dangerous business. Each |
| a planned, measured, manner. Very early in the | | | | potential risk needs to be carefully, rigorously, |
| preparation and planning stage, it is essential that | | | | analysed, and the project team, the supporting |
| potential risks are identified, categorized and | | | | teams and individuals, the organisation(s) involved in |
| evaluated. Rather than look at each risk | | | | managing the project, all need to be evaluated to |
| independently, and randomly, it is much more | | | | determine whether there is the capability to manage |
| effective to identify risks, and then group them into | | | | that risk successfully, should it arise. Where gaps in |
| categories, or, to draw up a list of categories and | | | | capability are identified, then appropriate corrective |
| then to identify potential risks within each category. | | | | action must be taken. During the project itself, this |
| This way, common influences, factors, causes, | | | | capability must be constantly monitored and, where |
| potential impacts, and potential preventative and or | | | | necessary, action taken to return the level of |
| corrective actions, can be discussed and agreed on. | | | | capability to the required level. |
| Categorising risks is a way to systematically identify | | | | Conflict over resources often arise during the middle |
| the risks and provide a foundation for awareness, | | | | to later stages of a project, because, often |
| understanding, and action. Each project will have its | | | | unexpected other, newer demands arise which are |
| own structure and differences, but here are some | | | | seen as being of higher priority. This can lead to |
| categories that are common to most projects (to | | | | resources that were originally allocated to the project |
| which you can add your own local, sector, or project | | | | being taken away, or reduced in quantity or quality, |
| specific, categories). I have not given deep detail | | | | almost certainly to the detriment of the project. The |
| here, but your project team and sponsors should be | | | | answer to this dilemma is not easy, but in essence, |
| able to relate to these categories and use them in | | | | the project management team must include "conflict |
| the risk assessment process. For example, with | | | | over resources during the life of the project" as a |
| "Operational Resources" your team can discuss issues | | | | major potential risk, and plan for it accordingly by |
| such as, availability, delivery timing, cost, capability, | | | | securing agreements and then monitoring the |
| necessary conditions for operation (eg. ground, | | | | situation continuously. If a dispute does arise, there is |
| weather, light); with "Stakeholder Resources" your | | | | a role here for the project Champion, and or the |
| team can identify all stakeholders and list potential | | | | Client to ensure that the allocated resources are not |
| risks that these stakeholders may generate, such as | | | | taken away. |
| bad publicity from the media, delays caused by | | | | Fundamental to many of the issues that we discuss |
| community or environmental groups, delays caused | | | | here is the question of who should be responsible for |
| by utility companies, problems with trade unions. | | | | risk assessment and management. Too often the |
| Related risks and potential actions, must then be | | | | responsibility for risk identification, assessment, and |
| documented in the risk management plan, and | | | | management, are left to the project team, especially |
| discussed at all the key stages as the project | | | | once the project has started. But there are other |
| progresses. All the details, and the actual action | | | | individuals and groups, including some external |
| taken, and the outcomes, must then be recorded | | | | stakeholders, who should be continuously monitoring |
| and reviewed during the closure and review stage, | | | | particular activity and feeding back regularly to the |
| for lessons to be learned and applied to future | | | | project team leader. Some are easy to identify. They |
| projects. | | | | include of course, the Client, the Sponsor, key |
| Here the question that most project managers ask: | | | | specialists in the project team's organisation, or |
| "how do we know if we can manage the risk, if it | | | | organisations, the major external participants, such as |
| arises?" | | | | emergency services, local authorities and contractors |
| Often, sadly, no evaluation is carried out to | | | | The easy way to identify other individuals and groups |
| determine the expertise, experience, capabilities of | | | | is to look at your list of Stakeholders. Each one has a |
| the team, individuals, organisations that would be | | | | responsibility, to a greater or lesser degree, to help |
| required to deal with, manage that risk, if it occurred. | | | | identify potential risk and give information on this to |
| As a result, if it did, the team may not be able to | | | | the project team. Again, the answer to managing the |
| deal with it effectively, even though the initial | | | | question of Risk Responsibility is to build discussion, |
| forecast was that the risk could be managed. This | | | | planning, and action, on this into the project planning |
| happens frequently when the planning team is not | | | | and operational activity. |