How do you handle risk escalation and mitigation when a risk event occurs?

1 Severity and urgency

The first step when a risk event occurs is to assess its severity and urgency. Severity refers to how much the risk event affects the project objectives, such as scope, quality, time, and cost. Urgency refers to how soon the risk event needs to be addressed, based on its likelihood and timing. You can use a risk matrix to categorize the risk event into four levels: low, moderate, high, or extreme. This will help you prioritize the risk event and decide how much attention and resources it requires.

2 Communication and escalation

The next step is to communicate and escalate the risk event to the relevant stakeholders. Depending on the level of the risk event, you may need to inform or consult with different people, such as the project sponsor, the client, the project team, the functional managers, or the senior management. You should use the appropriate communication channels and tools, such as email, phone, chat, or reports, to convey the information clearly and concisely. You should also follow the escalation protocol defined in the project charter or the risk management plan, which specifies who, when, and how to escalate a risk event.

3 Risk response and monitoring

The third step is to implement the appropriate risk response plan and monitor the results. The risk response plan is a set of actions and strategies that you have prepared in advance to deal with the potential risk events. It should include the roles and responsibilities, the resources, the budget, the timeline, and the expected outcomes of the risk response. You should execute the risk response plan as soon as possible, and track its progress and effectiveness. You should also update the project status and report any issues or changes to the stakeholders.

4 Learning and updating

The final step is to learn from the risk event and update the risk register and the project plan. The risk register is a document that records all the identified risks, their characteristics, their status, and their response plans. The project plan is a document that outlines the scope, schedule, budget, quality, and resources of the project. You should review the risk event and identify what went well, what went wrong, and what can be improved. You should also update the risk register and the project plan to reflect the current situation and the lessons learned. This will help you prevent or reduce similar risk events in the future, and improve your project performance.

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?