Managing Project Risks and Issues

Project Risks

Many management experts define a project risk as a future project issue. This means that it is a problem which might affect the project in the coming future. Neglecting project risks can be dangerous for project completion on time. If a project manger can identify project risks on time, then he would certainly be able to save a lot of money and time which can be utilized fruitfully to maximize gains for the firm.

Project Issues

Project issues are certainly different from project risks. A project issue is a problem which is affecting the project currently. Dealing with project issues immediately becomes important to make sure that work on the project does not come to a standstill and clients get their solutions on time.

Managing Project Risks

In our discussion of how to manage project risks and issues, let us know the techniques of risk management first.

Know Various Types of Risks

Knowing various types of risks is essential to deal with risks immediately. These standard risks are as follows:

•Inherent risk: Inherent risk is the risk which is always present around your work premises and can affect your project greatly.

•Project specific risk: Project specific risks are risks particularly associated with your business/project.

•Stage risk: Project completion is done in different stages and risks at any of these stages is the 'stage risk'.

Risk Identification and Analysis

In order to manage risks, their proper identification is very essential. A project manager has to identify potential risks very early that can be a big threat and try to understand what kind of effect they can have on the project. For this, conducting a detailed research by studying market changes, risks which occurred in the past, is necessary.

Risk Communication

Risk management is not a one man job. It requires the entire team to think of ways to deal with risks. So, communicating about risks with the rest of the team becomes absolutely essential for a project manager. This is one of the basics of risk management which you should never neglect.

Prioritizing Risks

When project manager and his team discovers probable risks for the project, then they will find that some risks are more serious in nature than the other risks. Naturally, the focus should be on dealing with bigger risks first. Prioritizing risks is an integral part of effective corporate management.

Risk Solution
Just risk identification and analysis is not enough; managers need to find effective solution to deal with these risks that can affect business in the future. The solutions for risks should be permanent which would show results and help a firm protect its business.

Managing Project Issues

As mentioned above, project issues are problems which we have to encounter during the project. In other words, 'issues' are something which have already happened. For managing issues, the management needs to have an action plan in place. The action plan should be a well thought one, and should be feasible to implement immediately to get out of the difficult situation. Project managers might have to deal with multiple issues at times and hence, using improvised technology would be the best possible solution to solve issues quickly. As mentioned already, issues are risks in the present and hence, the measures for project risk management can be used to deal with issues too. The only thing is that time to react and get the job done is very less in case of resolving issues. The following are the standard sets of issues that might erupt in a project:

•Change in the scope of a project

•Concerns regarding project quality

•Factual/technical errors in project completion

Risk mitigation is the key to deal with risks whereas an action plan for project issues will help the team complete a project on time. By being thorough with these project management concepts, you will be able to expand your company's business and achieve your set goals. Good luck!

By Charlie S
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  2. A project manager has to identify potential risks very early that can be a big threat and try to understand what kind of effect they can have on the project. 700-901 exam dump