You will learn how to identify risks and concerns that may arise on your project.
- Risk is inherent in every project. Just like rodents and roaches find their way into a farmhouse, risk can show up almost anywhere in your project. It's best to prevent them from occurring in the first place rather than trying to fix them after they've occurred. How do you prevent risk from turning into issues that can disrupt your project? For starters, you have to remain vigilant and proactively respond when trigger events occur.
Begin by assessing the root causes of risks along with how they may impact your project. Ask yourself, "What events can potentially trigger risks to occur," and, "Where do risks typically take place?" Some well-known areas you may find risk include things like requirements, technical specifications, communications, stakeholders, schedule, budget, scope, quality, and even resources.
It is your responsibility to anticipate, manage, and mitigate these risks throughout the project in order to successfully complete your deliverables. Additional benefits to identifying risks early in your project include, saving time and costs, as well as preventing risks from becoming issues. A number of tools and techniques are available to help you identify project risks. You can start by reviewing PMI's Project Management Body of Knowledge, also known as the PMBOK.
This guy has an entire chapter dedicated to risk management. Identifying risk is an iterative process that should involve your entire project team as well as other stakeholders. People who have worked on similar projects in the past can add useful insights that you might otherwise overlook. Also, you have to be adept at understanding process interdependencies so you can quickly prevent problems in one aspect of your project from negatively impacting other areas of your project.
The following example illustrates the pitfalls of not taking a holistic view of risks. In 2013, the US federal government launched healthcare.gov that the back of ensued provides a case study of what happens when risks aren't viewed holistically. The risks were inherent from the beginning mainly due to a lack of project oversight. According to the Cato Institute, the agency failed to follow federal contracting rules and did not have a cohesive plan for the website.
This led to cost overruns and project delays and healthcare.gov's rocky start. The article went on to state, one problem with these contracts was not designating a single company as the project lead. Furthermore, a project of this complexity needs a central command to oversee project development. CMS failed to assign one. As you can tell project risks were not properly taken into consideration from the outset.
Yes, the agency could have instituted stronger oversight, however, the contractor and more specifically the contractor's project manager should have proactively addressed these risks during the award phase and record any potential risk. Additionally these risks should have been shared with the agency and formerly documented. In this way the project manager could have at least lessened the negative impacts. Don't underestimate the value of addressing risks upfront.
It can pay tremendous dividends later on in your project.
Learn the best practices and terminology for working with the government, including documentation such as subsidiary plans, RFPs, PWSs, and SOOs. Walk through the three phases of contract negotiation—pre-award, award, and post-award—and common challenges as well as solutions for bidding on government contracts and getting projects authorized.
Lynda.com is a PMI Registered Education Provider. This course qualifies for professional development units (PDUs). To view the activity and PDU details for this course, click here.
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- Avoiding common pitfalls
- Reviewing the request for proposal (RFP)
- Identifying stakeholders
- Refining the deliverables
- Finalizing the contract
- Kicking off the project
- Managing the project
- Closing out the project