Learn how to identify risks that your projects could face.
- [Voiceover] Every project faces risks. If you don't plan for how to deal with them, you spend too much time putting out fires, and that can cost your project time and money and make everyone involved with the project uneasy. To avoid that drama, you first have to identify the risks your project faces. Risks you're aware of are called known unknowns, such as misrouted shipments or weather delays. To help you get started, here are some examples of things that can introduce risk to projects.
Technology might not work the way it's supposed to, cost more than you expect, or not show up when you need it. A widely dispersed project team can increase risk, such as delays due to time zone differences, miscommunication due to different languages or cultures, or lack of teamwork because remote team members haven't developed effective working relationships, lack of detail, such as specifics on deliverables, due dates, or who will work on your project, can lead to all sorts of problems.
Limited options, such as needing people with rare skills increase risk because you don't have alternatives if a problem arises. Work with everyone on your team to identify risks. Talk to the experts for different parts of the project about the risks they foresee. Ask key people on the project what they think, and ask other project managers about risks from similar projects. For each risk you identify, fill out a risk information form with what you know about it.
Include specifics about the risks, for example, which tasks are affected, what objectives are in danger, what are the consequences, and so on. Up until now, we've covered identifying the risks we can anticipate, but what do you do about the risks you can't predict, called unknown unknowns? These risks come from situations that are so out of this world that they never occur to you. Because you can't identify these risks, you handle them by setting aside contingency funds for dealing with them, like setting money aside in case you face a big house repair.
Contingency funds are a commonly used method for responding to unknown unknown risks you can't foresee, as well as small risks you do recognize. The question is, how much should you set aside? Many companies use a percentage of the project budget, but the percentage used is typically based on past experience. If risks occur, they can impact your project, such as causing delays or increasing cost.
To minimize the effect of negative risks, or take advantage of positive ones, you first have to identify the risks that your project faces.
Bonnie Biafore has always been fascinated by how things work and how to make things work better. In this course, she explains the fundamentals of project management, from defining the problem, establishing project goals and objectives, and building a project plan to managing team resources, meeting deadlines, and closing the project. Along the way, she provides tips for reporting on project performance, keeping a project on track, and gaining customer acceptance.
- Defining the components of a project
- What it takes to be a project manager
- Using project management software like Microsoft Project
- Managing project scope, budget, and schedule
- Managing project resources, including people
- Managing project risk
- Initiating a project
- Identifying and managing stakeholders
- Identifying requirements and deliverables
- Developing a project plan
- Building a project schedule
- Assigning resources to tasks
- Understanding the critical path
- Running the project
- Managing teams
- Monitoring performance
- Closing a project
Skill Level Beginner
1. Getting to Know Project Management
2. Exploring Project Management Knowledge Areas
3. First Things First
How to develop requirements4m 19s
4. Developing a Project Plan
5. Building a Project Schedule
6. While You Run the Project
7. Working with Teams
8. Monitoring and Controlling Progress and Performance
9. Closing a Project
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