Risk Management – Risk Control

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Risk Management – Risk Control

Risk Control

Once the risks are identified and prioritized, it becomes very clear which risks the project should handle in the order of priority.

Risk Control activities consist of the following activities-

  • Risk management planning and
  • Risk monitoring and tracking

Risk management planning consists of identifying strategies needed to minimize the risk consequences.

Risk monitoring and tracking consists of periodic review of risks and revision to the Risk Analysis and Management Plan (RAMP), if needed.

Risk management planning

For each risk, based on the risk priority, Project Manager identifies Mitigation strategy and Risk handling strategy.

Mitigation strategy identifies the actions to be taken before the risk occurs to minimize risk consequences. Mitigation Strategy would always be driven by Decision Analysis and Resolution process.

Risk handling strategy identifies the actions to be taken after the risk occurs, in spite of implementing the mitigation strategies.

Some of the potential risks being faced by the and possible risk mitigation plans and risk handling plans are given in the Table given below:

 

Risk

Risk Mitigation Plan 

Risk Handling Plan

Ambiguity/ Change in the requirements

Negotiate with the customer and document at the contract time itself how such situations will be handled.

Ask the customer to raise a change request, and negotiate the schedule and delivery dates.

Incorrect estimates

Ensure that no assumptions are made while estimating.

Re-estimate using the additional information available and re-plan.

Unavailability of required skills

Inform the customer. If possible, negotiate to get the team trained before the initiation of the project. Negotiate with the customer on schedule. If possible, obtain resources from the customer for consultancy and reviews.
Low skill level of team members Screening before allocation to the project to ensure presence of sufficient skills in the team. Plan training on weak areas to raise the skill level of the team. Assign repetitive tasks to improve the performance of the team members.
Manpower attrition Have backup team members ready for all the crucial activities in the project. In case of rare skills have the backup trained. Maintain good technical documentation to help in faster induction of new people into the team.

In cases where a single alternative is not available for backup, try to granulate the tasks being performed by a crucial team member and get a group of team members acquainted with the sub-tasks.

 

Delay in Customer feedback Negotiate before hand on the response time from the customer Communicate to the customer and add the delay to the schedule
Technical complexity in the project

Have adequate buffers in estimation for handling complexity and/or drop certain requirements in consultation with customer to reduce the complexity

 

Obtain support from experts in handling technical complexity

Use of new technology

Train the team on new technology. Include buffers for use of new technology.

Obtain support from Experts/Customer on the technology-based issues.

Tight schedule

Negotiate with the customer on schedule. Explore the possibility of increasing the manpower. (This may not always be possible and also works only when the tasks are fairly independent)

 

Negotiate with the customer on dropping some of the functionality / requirements to meet the schedule. Monitor the critical path closely.

 

Lack of process compliance

Identify the cause of non-compliance and train the team if necessary

Re-plan the reviews to improve the compliance

 

Risk monitoring and Tracking

The key to risk action planning is to consider the further consequences of a decision made. The RAMP is to be maintained as a part of the project plan and needs to be re-visited whenever changes occur in the project plan.

Contingency Planning can be used to monitor the risk and handle it when it occurs. The following sections gives guidelines in monitoring the risks.

The Project shall be continuously monitored for the risks that are identified and also for the occurrence of new risks. The identified risks and the mitigation plan are to be discussed in the Project review meetings/Project progress meetings. If required, transparency may be maintained with the customer so as to obtain support from the customer in monitoring the project for possible risks.

 

Whenever the project plan is modified, the risks shall be re-assessed and the RAMP shall be revised, if required. Whenever, risks occur in the project, the project plan and/or the project schedule shall be revised if necessary. Similarly, when new risks are identified during project execution, the RAMP shall be revised

Depending on the consequential impact or degree of customer dissatisfaction due to a risk, it probably needs to be brought to the notice of senior management. One may also decide to share some of the risks with the customer, to bring in transparency, especially where customer could decide to contribute in mitigating the risk.

Situations may arise in the project execution, when the occurrences of risks become inevitable. The project team needs to be prepared to handle such risks as and when they happen. If essential, the team may be trained to face the risks to have a minimal impact on the execution of the project and the quality of the work products in the course of events.

 


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