What are the challenges of implementing a program risk management plan?

Risk management is a function, a process, a framework and above all also a business opportunity. From the program management lens, a PRAM plan (program risk assessment & management plan) is an essential part program/project/product lifecycle. During the lifecycle as we progress and at each stage/phase PRAM is an always on process. Each stage, throws a different challenge. Risk can occur in any of these organization pillars ? People, Process, Business, Culture and Strategy and we must covered all these in a PRAM plan. And to manage things better, may be have a PRAM plan for each of these pillar separately.

The prime objective of a risk management plan is to identify, assess, mitigate, and monitor risks associated with a specific project or program. It's a complex process involving several variables. Risks can be internal or external, known or unknown, and of various forms, including technical, financial, operational, or legal risks. All these can be addressed with appropriate processes and expertise at every stage. The biggest challenge however, is Resistance to change and lack of a risk-awareness culture. We fail to understand the impact of the Human factor in all processes and time and again we come to a dreadful conclusion that Organizational culture is what eventually influences the success or failure of a risk management plan.

Often risk management processes and programs are well framed and established but often under resourced until risks turn into issues. True risk mitigation activities deserve the resourcing and attention needed to achieve the intended mitigation. It's important at the onset of a program, and frequently during execution to prioritize risks and actively staff the mitigation actions. In particular, resource constraint and budget risks do not get the attention they deserve until they become critical blockers to execution and delivery.

The biggest challenge I have seen in my experience is to compile a comprehensive list of "relevant" risks. It's important to identify the risks which are not immediately visible but also limit the discovery to not be too wide. As a very simple example, listing a key developer going on vacation is relevant but only when progress of the project is directly dependent upon the developer's work. If the work is distributed across multiple developers or there's an alternate to developer's work, this risk becomes irrelevant. Similarly, calling out a risk that a team can go on unplanned vacation due to a festival is relevant, but a better way is to plan accounting for lower developer productivity during the festival, instead.

I believe one of the oft overlooked components of standing up a risk management process is to stress that logged risks and issues are a good thing, not a bad thing. Many times PMs can be hesitant to log risks and issues due to the perception that their work will be viewed in a negative light. I find it very helpful to explain to them that an unlogged (or potentially unknown) risk or issue is much worse. Open communication as well as realistic reporting of risks are crucial to meet project goals and deadlines.