How do you control risks during a project?

1 Identify risks

The first step to control risks during a project is to identify them as early and as comprehensively as possible. You can use various methods to gather information about potential risks, such as brainstorming, interviews, surveys, checklists, historical data, assumptions analysis, SWOT analysis, and expert judgment. You should involve your project team, sponsors, clients, and other stakeholders in this process, as they may have different perspectives and insights on the sources and effects of risks. You should document the identified risks in a risk register, which is a tool that records the characteristics and status of each risk.

2 Analyze risks

The second step to control risks during a project is to analyze them in terms of their probability and impact. Probability is the likelihood that a risk will occur, and impact is the magnitude of the consequences if it does. You can use qualitative or quantitative methods to assess these factors, depending on the availability and reliability of data, the complexity and size of the project, and the level of accuracy and detail required. Some common tools for risk analysis are risk matrices, risk scoring, decision trees, sensitivity analysis, and Monte Carlo simulation. You should update the risk register with the results of your analysis, and rank the risks according to their priority.

3 Plan responses

The third step to control risks during a project is to plan how to deal with them, based on their priority and your risk appetite. You can choose from four main strategies to respond to risks: avoid, transfer, mitigate, or accept. Avoidance means eliminating the risk or its cause, transfer means shifting the responsibility or impact of the risk to a third party, mitigation means reducing the probability or impact of the risk, and acceptance means acknowledging the risk and its consequences. You should select the most appropriate and feasible response for each risk, and assign roles and responsibilities for implementing it. You should also document your risk response plan in the risk register, and communicate it to the relevant stakeholders.

4 Monitor and control risks

The fourth step to control risks during a project is to monitor and control them throughout the project execution. This means tracking the status and performance of each risk, reviewing the effectiveness and suitability of your risk response plan, identifying new or changing risks, and taking corrective actions as needed. You should use various tools and techniques to monitor and control risks, such as risk audits, risk reviews, risk reports, risk metrics, risk triggers, contingency reserves, and change management. You should update the risk register and the risk response plan regularly, and report any significant changes or issues to the project team and stakeholders.

By following these four steps, you can control risks during a project and increase your chances of delivering a successful outcome. Controlling risks is not a one-time activity, but a continuous and proactive process that requires your attention and involvement as a project leader. How do you control risks during a project? What are some of the challenges and best practices that you have encountered or applied in your projects?

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?