Project risks management is an insurance that allows to save the important component of the project in a timely manner, be it money or time, or to prevent the loss of firm’s reputation when providing services. Besides, preventive measures are often cheaper that solving problems that may arise. What risks are the most dangerous for the project?
There are many typical risks that may negate all the efforts to implement the project. Let’s consider the main threats that lose the case.
Project definition
First and primary stumbling point is uncertainty: the main steps have not been thought out, risks – worked out, plan and algorithm of actions – agreed, as well as answers and main questions – fixed.
- What is the relevance of the project? It is difficult to understand the project goals and the results of its implementation
- Why to implement the project? Any project may be carried out in many ways using different approaches. For instance, to change the requirements for quality and coverage, to perform work faster or slower, in sequence or parallel. Or you can just not waste time on thinking and jump right into action.
- What will be the result of the project? If there is no answer to this question, it is unclear what the end result is supposed to be (product, service), there is no single well-thought-out, processed, fixed image. If we talk about the projects of organizational change in the company, then the unawareness of the final product is a common thing.
Efforts and resources can be wasted if proper planning of a particular project is not carried out before deciding whether to implement it or not. Therefore, it is important to take project planning seriously from the beginning. This is the first step in deciding whether to continue it. Once the plan is developed, it becomes a guiding document. Although the plan is a dynamic document that can be modified and drafted by a large number of people, it exists independently of any employee or working group. The plan must determine the progress of all work performed within the project.
It is also important to focus on achieving the goal. Without a project goal that defines and sets the direction of work and employee interaction, people will go around in circles and resources will not be used effectively.
Project team
Project management is impossible without close cooperation of employees. People who work on complex projects alone can sometimes make a heroic contribution in common cause, but they are able to succeed only as a part of something bigger.
Project team should work as a mechanism combining expertise and experience in different areas of knowledge needed to address intermediate goals to achieve the goal. The answer to the question of who and what should do to get results is a step towards the successful implementation of the plan. The risk of answering this question incorrectly can often be related to a previous threat. If it is not clear what needs to be done, it is difficult to say who and what should do right here right now. The strategy in this situation for most employees is to expect active action from other team members. Inactivity, unwillingness to take responsibility and move forward without the support of like-minded people is one of the big problems of employees.
The risk that the members of the team cannot complete project tasks is another problem. They do not have sufficient competence; they are working on the project without realizing the opportunities.
It also happens that team members do not want to perform project task. The employees are competent but don’t understand why they have to do this project especially if they have a main job.
Decision making
One of the most common obstacles to implement the project is when management delays decision making process. If there is a problem, it needs to be solved, it is even clear how, but the decision is not made.
Sometimes the decision making is blocked by conflicts between top-managements, departments, and team members.
Often, key project decisions change frequently and out of control. Changes are normal. It is bad if they are unmanageable. Unfortunately, this is a very common phenomenon, especially when it comes to important parameters. All innovations must be applied in a managed and organized manner.
