When to perform a detailed Risk Analysis

When to perform a detailed Risk Analysis

Risk Management
A great deal of the projects and risk management literature out in the world states that a detailed risk analysis is required if you deal with a large project and a big budget. However, since these terms are relative, you or another member of your team or organization must define what a large project and a big budget are. Also, even though I agree with this approach, I prefer to base my decision on whether to execute a detailed risk analysis on the level of concern of the key stakeholders, including myself. For example, some might say that performing a quantitative risk analysis and the qualitative risk analysis is too much for a $20,000 or $30,000 project, which is mostly a safe bet, but if this is a new client.…
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Risk Management as Therapy

Risk Management as Therapy

Risk Management
Whether personally or professionally, the things that keep us up at night are uncertainties, such as “will I have enough money budget?” or “what will happen to my company if we are late on our intermittent and final deliverables? Or “what kind of impact will there be if my latest client is not happy with my work?” Of course, these concerns are valid but non-existent until they materialize. Still, it is the fear of these risks materializing that creates anxiety. So, one way to deal with this problem is to face it head-on and analyze these uncertainties one by one. Again, this exercise will work for either a personal or a professional situation. [caption id="attachment_18067" align="aligncenter" width="640"] Risk Management as Therapy[/caption] The basic concept of risk management starts with identifying…
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SWOT in Risk Analysis

SWOT in Risk Analysis

Risk Management
I recently prepared some course material for an upcoming workshop on risk management. The client had expressed a need to train their staff in the basics of risk analysis and more advanced subjects, such as qualitative and quantitative risk analyses, and the best way to develop the appropriate responses and risk triggers. However, they had not considered the SWOT (Strengths-Weaknesses-Opportunities-Threats) analysis. Not because they did not think it was important, but because other risks they felt were more immediate and crucial for project and organization success. SWOT is an integral part of risk analysis, but it gets overlooked often, even though it is an essential part of risk management. SWOT analysis aims to look internally and determine the project team's strengths and relate to potential opportunities. Conversely, weaknesses are identified…
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Risk Management for Start-Ups

Risk Management for Start-Ups

Risk Management
I recently helped a client prepare to launch his firm. And although he has legal, financial, marketing, and administrative professionals to help him in those areas, he still carried an inordinate amount of anxiety focused on the potential threats to the business's success. The anxiety was keeping him up at night. He had doubts regarding profitability, marketability, work-life balance, etc. Also, he thought his constant and unrelenting anxiety was just part and parcel of being an entrepreneur, but in reality, it does not need to get that bad. You have to face your concerns and mitigate them. The best tool to address this kind of stress and anxiety is confronting the causes, which is done through risk analysis and management. For example, he has enough resources to carry him through…
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Preparing a Risk Management Plan and Business Impact Analysis

Preparing a Risk Management Plan and Business Impact Analysis

Risk Management
The process of recognizing the causes of risk in business and preparing the plans to overcome them is called a risk management plan. Preparing a risk management plan is important because any carelessness may adversely harm and permanently shut your business. Analyzing your business, evaluating the risk, and making strategies to minimize the impact of a risk may be helpful to recover your business quickly if any odd incident occurs. Many business owners don't give importance to risk management plans, but they are essential to your business. Should have risk management solutions in the case of an accident. Types of risk may affect every business differently depending on the nature of the business. You cannot prepare for all the possible risks, but you can make a common risk management plan…
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The Risk Management Process in Project Management

The Risk Management Process in Project Management

Project Management, Risk Management
There would be no need to mitigate against problems in an ideal world because proper planning would ensure that everything went down without a hitch. But, of course, it only takes the briefest of time out in the real world to disavow any notion that something like that would be possible. Even the simplest of operations often have too many variables to safeguard against unforeseen problems, and that is why risk management is important. You might not be able to prevent issues from arising, but you can be prepared for them when they do. What is Risk Management? In the context of project planning, risk management is how we identify potential problems that might crop up throughout the life of a project, analyze that risk, and formulate ways to respond…
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RISK MANAGEMENT IN PROJECTS

RISK MANAGEMENT IN PROJECTS

Risk Management
Risk Mitigation in project management starts with the planning phase, which is more important than anything else, according to most experts in this field. It involves finding solutions to the problems faced by project managers worldwide by identifying the threats and weaknesses associated with various projects. It aims to create action plans to reduce and mitigate the risks involved and enhance opportunities using various models. As long as we are optimally using our human and non-human resources and striving to eliminate risks and, as such, the allied damages, we are closer to attain sustainability that will have a long-term benefit to generations to come. A project is a combination of human and non-human resources put together as a temporary organization in nature, having a start and end date and is…
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Business Risks and How to Manage Them

Business Risks and How to Manage Them

Risk Management
As a business owner or a business-owner-to-be, you should be in the know that running a business comes with many possible risks. How damaging these can be to the business depends mainly on handling and managing your situation. If you and your team are not prepared, business risks can be time-consuming and expensive to repair. So, regardless of how big your business is, you need to be informed of what can be expected and how to manage it. The first step is to identify risks successfully. If and when the situation presents itself – being prepared can minimize costs, time, and productivity losses. An excellent strategic business planning can’t go without the ability to identify possible risks. Here are some useful insights to make the whole experience easier. Physical Risks…
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Facing Risk in Uncertain Times

Facing Risk in Uncertain Times

Risk Management
Hey, it's Mike from PM Workshops. If you're like me, you're sitting at home kind of wondering what's going on and what the future's going to look like, and there's just a high degree of uncertainty. So for today, we're going to talk about is risk management in these uncertain times.  Now is a tough time for all of us, even those of us who have avoided the contagion. Our friends, families, and colleagues are affected in one way or another by this medical crisis however history has shown that these crises can also be learning experiences plus they also generate creativity and new approaches to business as usual but how can we think about the future or even the next steps when there's so much uncertainty?   The answer…
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Project Management Change versus Risk

Project Management Change versus Risk

Project Management, Risk Management
Change and Risk are similar in the sense that they both deal with uncertainty. In other words, they are both unknowns, which may or may not occur, and they can both have negative and positive impacts on a project. So how do we distinguish them?   In the simplest of terms, “risks” can and usually are identified at the beginning of a project, as well as throughout the project, as soon as any potential new risks are identified. However, “change” is unanticipated and, therefore, poses its own unique set of challenges. Whereas a risk, which you identified early in the project cycle, can be addressed through some sort of strategic response (mitigation, transfer, etc.) and monitored through pre-determined triggers, a “change” will occur spontaneously and needs to be addressed as…
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