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Thinking Positive About Risk Management

Published on Monday, November 25, 2002 - 02:52 PM

Written by: Frank P. Saladis PMP

Most sources of information about Risk Management focus on the need to be proactive instead of reactive. The old saying �an ounce of prevention is worth a pound of cure� is right on target when it comes to planning for risk. To put Risk Management in its simplest form it means learning to expect the unexpected. It means that you, the project manager, must start your team thinking about risk situations, prevention ideas and �what if� scenarios at the start of project planning, not when an incident occurs. According to the PMI PMBOK Guide �, Risk Management includes: Risk Planning, Risk Identification, Qualitative Analysis, Quantitative Analysis, Risk Response, and Monitoring and Control. The process procedures, tools, and techniques provided in the PMBOK � provide the project manager with the essential framework for a Risk Management Plan and are well worth reading. However, as the project manager, you must take these principles and convert them into understandable and usable tools for your project team members. You have to make sense of the PMBOK for the project team member and non- project manager. Keep in mind that (generally speaking) all project team members want their projects to turn out great. It�s an inherent desire. Emphasize to your team that �hoping� things will work out is not the answer. What the project needs are contingency plans. We need to adapt to various situations quickly and initiate alternatives that have been considered and are ready for implementation.
Project managers, by the nature of the job, should expect trouble. This doesn�t mean you are a negative thinker, it means just the opposite. When you expect trouble, you are demonstrating your ability to think positively at a high level. The key is to train yourself to expect trouble. Take time to simulate a wide range of problems and issues. This will condition you to respond calmly and professionally. In other words, you and your team need to be �contingency-prepped�. When you are prepared, you and your team will experience less stress, think more clearly and respond faster. A statement I heard in a movie a while ago sums it all up: � Chance favors the prepared mind�. Condition your team to think about what can go wrong. Develop and write down scenarios. Use the team to think about and identify potential risks. Discuss possible solutions and write them down. Use diagrams and flow charts. When you have completed your list of risk situations and solutions, simulate the problems by practicing. Introduce a problem and walk through the scenario with your team. You can do this during project meetings or schedule separate �risk strategy� meetings. The idea is to get your team to think about possible issues in advance and also think about how to resolve them. The more you do this the better prepared you team will be when an actual risk event occurs. As the project progresses, encourage your team to think of more complex situations that are more challenging to resolve. This constant practice will ensure that your team is better prepared to survive any major situation that may develop.

Include Risk Management in your everyday project thinking. Add Risk Planning to your project meeting agendas. Work with your team and encourage them to think positively about risk. Most of us practice some form of risk management in our daily lives, so why not make it a part of your �project life cycle�.

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