Construction Project Management Portal

Project Risks and How to Identify Them

All projects are different and the best way of identifying potential risks within a complex project is to call on the experience of past projects within the same field. Even within different industries there are many areas of potential risks that can be the same or similar.

The first approach is to take a broad overview of the different areas of the project:

  • Scope
  • Equipment
  • Technology
  • Existing Data
  • People
  • Timescale
  • Budget

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Then take each section and break it down into finer detail. A brainstorming session with a small group of team members representing different parts of the departments and groups involved can be helpful. This does not have to be a time-consuming task, but is critical to the successful management of a project.

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May 11, 2012 Posted by | Project Management | Leave a comment

Your Risk Management Process: A Practical and Effective Approach

By Vicki Wrona, PMP

Some experts have said that a strong risk management process can decrease problems on a project by as much as 80 or 90 percent. In combination with solid project management practices, having a well-defined scope, incorporating input from the appropriate stakeholders, following a good change management process, and keeping open the lines of communication, a good risk management process is critical in cutting down on surprises, or unexpected project risks. Such a process can also help with problem resolution when changes occur, because now those changes are anticipated and actions have already been reviewed and approved, avoiding knee jerk reactions.

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Defining “Risk”

Before one can embark on a risk management process, one must have a solid understanding of some key definitions. Project risks as defined from a PMI perspective are, at their core, unknown events. These events can be positive or negative, so that the word “risk” is inherently neutral. That said, most of the time and focus is spent handling negative project risks, or “threats,” rather than positive project risks, or “opportunities.”

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May 11, 2012 Posted by | Project Management | | 2 Comments