Optimize Risk Management…. Optimize PM Performance

By MaryGrace Allenchey, PMP

Experienced Project and Program Management (PM) Professionals acknowledge Risk Management as a significant and critical process of Project and Program Management (PM) best practices.

Therefore rigorous procedures are required to effectively identify, assess and respond to risk events… the uncertainties that pose potential threats, as well as potential opportunities to projects and programs.

Projects and programs reside in that uncertain environment and are therefore by their very nature a “risky” undertaking.

Most projects and programs are initiated to deliver a new product or service, implement new methods, procedures or technologies, enable new skills and capabilities, enhance polices or processes, explore strategic alternatives … and the list goes on.

Risk is the cumulative effect of the chances of uncertain occurrences positively or adversely affecting the project and program objectives.

Managing “uncertainty” is the fundamental premise and primary objective of Risk Management best practices.

Effectively applying the following six processes of Risk Management (RM) promotes successful delivery of quality products and services that meet or exceed stakeholder functional specifications and performance expectations:

  1. Plan Risk Management,
  2. Identify Risks,
  3. Perform Qualitative Risk Analysis,
  4. Perform Quantitative Risk Analysis,
  5. Plan Risk Responses, and
  6. Monitor and Control Risks.

Optimize Risk Management and Optimize Project and Program Management Performance

Successful implementation of these RM processes requires defining effective and proficient RM techniques as well as applying efficient RM tools to enhance the Risk Management skills and capabilities of Project and Program Managers.

Ensure your RM process resides within the framework of the Seven Principles for a Risk Management Process, defined by Carnegie Mellon’s Software Engineering Institute:

  1. Global Perspective
  2. Forward Looking
  3. Communications
  4. Process Continuance
  5. Shared Vision
  6. Teamwork and
  7. Integrated Management

Develop risk diagnostics that promote effective management and integration of the three critical enterprise or organization Process Areas:

  1. Business Management Processes
  2. Product or Service Development & Delivery Processes
  3. Project and Program Management Processes

Optimize the team synergy that RM processes facilitate. Project and program teams have the opportunity for creative and innovative solutions when developing strategies to eliminate potential threats as well as strategies to embrace potential opportunities throughout the lifecycle of the project or program.

And last but certainly not least,

Vigilantly apply Project and Program Management (PM) best practices. This comprehensive suite of PM processes and knowledge areas is actually a successful Risk Management strategy.  As processes for promoting and implementing effective management as well as an efficient structure for all projects and programs, diligent application of PM best practices significantly reduces the negative impact of the threats to projects and programs, and significantly increases the positive impact of the opportunities to embrace.

To further enhance your Risk Management capabilities, implement the Seven Principles for a Risk Management Process, manage the three critical Enterprise Process Areas, as well as apply effective Risk Diagnostics, check out the ARMED-PM (Advanced Risk Management Essential Diagnostics for Project & Program Management) course at PDUs2Go.com.

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