What are the best practices for managing risk in TI projects?

2 Analyze risks

Once you have identified the risks, you need to analyze them to determine their probability and impact on your TI project. Probability is the likelihood of a risk occurring, and impact is the severity of the consequences if it does. You can use qualitative or quantitative methods to analyze risks, depending on the availability and reliability of data and information. Qualitative methods involve ranking risks based on subjective criteria, such as high, medium, or low probability and impact. Quantitative methods involve using numerical values and formulas to calculate the probability and impact of risks, such as expected monetary value (EMV) or Monte Carlo simulation. The purpose of analyzing risks is to prioritize them and focus on the ones that pose the most threat or opportunity for your TI project.

3 Plan responses

After you have prioritized the risks, you need to plan how to respond to them. There are four main strategies for responding to risks, depending on whether they are negative or positive. Negative risks are threats that can harm your TI project, while positive risks are opportunities that can benefit it. The strategies include avoiding, transferring, mitigating, and accepting. You should choose the appropriate strategy for each risk based on the cost-benefit analysis and the risk appetite of your TI project. Additionally, assign roles and responsibilities for implementing the risk responses and document them in a risk register or a risk management plan. Avoiding involves eliminating or reducing the probability or impact of a negative risk, such as changing the project scope, schedule, or resources. Transferring shifts the responsibility or ownership of a negative risk to a third party, such as a contractor, vendor, or insurer. Mitigating takes actions to minimize the probability or impact of a negative risk, such as testing, training, or contingency planning. Accepting acknowledges and accepts the consequences of a negative or positive risk, either actively or passively.

4 Monitor and control risks

The final step in managing risk is to monitor and control the risks throughout the TI project lifecycle. This involves tracking the status and performance of the risks and the risk responses, as well as identifying and analyzing any new or emerging risks. You can use various tools and techniques to monitor and control risks, such as risk audits, risk reviews, risk reports, risk indicators, or risk triggers. You should also communicate and update the risk information to your project team, stakeholders, customers, and experts, and solicit their feedback and input. You should also evaluate the effectiveness and efficiency of your risk management process and make any necessary adjustments or improvements.

Managing risk in TI projects is not a one-time activity, but a continuous and iterative process that requires constant attention and adaptation. By following these best practices, you can increase the chances of achieving your TI project goals and delivering value to your customers and stakeholders.