What are the most effective strategies to train FM contract managers on risk management and mitigation?

1 Identify the sources and types of risks

The first step to manage and mitigate risks is to identify them. You need to understand the sources and types of risks that can affect your FM contract, such as operational, financial, legal, environmental, reputational, or strategic risks. You can use various tools and techniques to identify risks, such as risk registers, checklists, interviews, surveys, brainstorming, or SWOT analysis. You should also involve your service providers and stakeholders in this process, as they may have different perspectives and insights on the potential risks.

2 Assess the likelihood and impact of risks

The next step is to assess the likelihood and impact of each risk, based on the available data and information. You need to determine how likely each risk is to occur, and how severe its consequences would be if it did. You can use qualitative or quantitative methods to assess risks, such as scoring scales, matrices, probability distributions, or simulations. You should also consider the interdependencies and correlations between risks, as well as the uncertainties and assumptions involved in your analysis.

3 Prioritize and plan for risks

The third step is to prioritize and plan for risks, based on your risk assessment. You need to decide which risks are the most critical and urgent, and which ones are less important or manageable. You can use various criteria to prioritize risks, such as cost-benefit analysis, risk appetite, stakeholder expectations, or regulatory requirements. You should also develop risk response plans for each risk, which outline the actions, resources, responsibilities, and timelines to prevent, reduce, transfer, or accept the risk.

5 Review and improve risk management

The final step is to review and improve your risk management process, and learn from your experience and feedback. You need to evaluate the results and performance of your risk management activities, and identify the strengths, weaknesses, opportunities, and threats. You should also communicate and report your findings and recommendations to your service providers and stakeholders, and seek their input and feedback. You should also update and revise your risk management plans and strategies, based on the lessons learned and best practices.

Risk management and mitigation is a vital skill for FM contract managers, as it can help you achieve your contract goals, protect your interests, and enhance your reputation. By following these strategies, you can train yourself and your team to be more effective in this area, and deliver better value and quality to your clients and customers.