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Project management: Don't run the risk of being unprepared

June 13, 2011 - Tags: Managing

Istock 000007266907xsmallImagine your business has taken on a major project — let's say to install wooden fencing around a new subdivision. You've planned everything out: your budget, your schedule and the resources you'll need. Sounds like a fool-proof plan — what could possibly go wrong?

Therein lies the problem: if you haven't planned for what could possibly go wrong, if something does go wrong, the results can be problematic. What if your lumber supplier has a lumberyard fire just before your delivery date? The odds of this happening are slim; however, managing risks to your project is about preparing for possible occurrences that are outside your project plan.

This is not to suggest that you fireproof the lumberyard. You want to prepare for the possible outcome: a problem with your supplier that ends up causing issues with your schedule and budget. How quickly can you get a new shipment of lumber, and how much will it cost you? What will you do with your displaced workers? One setback can often disrupt your entire project.

That's why it's vital for you to prepare for risk when you plan your project. By mapping out the potential problems that could arise during the course of your project and deciding how you will deal with such problems should they arise, you will be going in well-prepared.

You will want to tackle this task with all the major players involved in your project. If you're working with knowledgeable suppliers and skilled tradespeople, you can draw from their wealth of valuable experience. Try holding a group brainstorming session. By bringing everyone together, you can probably plan for many of the obstacles you might face. Once your group has listed all potential risks, the next step will be to determine how to deal with each problem.

A solid risk management plan can help you move forward with your project, confident in the knowledge that you won't easily be caught off guard. Keep in mind that risk management is just one of several important aspects of project management. For more information on managing your projects, visit our Project Management page.

Comments

This is so true. Well said!

By william on June 13, 2011

So many people jump headlong into projects without considering risk. Glad you made this point.

Thanks

By Jennifer on June 13, 2011

As a project manager, I whole-heartedly agree that managing risk has to be a top priority on every project, no matter how big or small. Unfortunately, most of us (myself included) learn this the hard way before we take risk management seriously. Any tips or advice you can pick-up from helpful websites, suppliers, subcontractors, etc. can keep you ahead of the curve so you are prepared when problems arise.

Some great info here, thanks!
Kevin

By Kevin on June 13, 2011

Project Risk Management is one of the key area out of nine knowledge areas.
Risks should be considered as Opportunities and Threats for positive and negative outcomes respectively. There should must be a proper risk management plan developed through various techniques & experts handling before the execution of project. More risks considered before execution, more confident will be the project manager and more successful will be the project.

Thank You
Inder

By Inder on June 21, 2011

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