WHAT IS
RISK MANAGEMENT?
Risk Management is the identification, assessment and control of potential threats that may prevent a project from being successful (Cole, 2020). Potential risks can arise from various areas of the project. An example would be potential accidents, such as a participant or team member injuring themselves during the project implementation. Preparing for such situations and weighing the severity of risk reduces such incidents from happening. Even if they do occur, the project team will not be taken aback as they are aware of how they should deal with such situations.
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With proper risk management, potential threats can be avoided. Even if they do occur, the project team is aware on how its impacts can be minimised. The understanding and controlling of risks allows the project team to be more confident in their project plans.
Photo by: Sammie Chaffin
WHAT ARE SOME TOOLS I CAN USE?
WHAT-IF SCENARIO ANALYSIS
This tool is often used in the science industry but can be adapted into project management as well. What-if analysis is a structured way of brainstorming to identify potential risks of a certain scenario. After which, the likelihood and consequences of what may go wrong (ACS Institute, n.d.). Answering these what-if questions and reviewing the results is a process that can create some of the best solutions for the risks of the project (Roberg, 2017).
Here's how you can use it:
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Generate What-if Questions - Questions can include, "What if the participants are uncooperative in the programme?". This is where the team members will ideate and list out potential risks that may occur in the project
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Evaluate and Assess Risk - Determine how likely it is that the risk may occur
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Develop Recommendations - Come up with ways to mitigate and prevent the risk from happening
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Why use this tool?
It allows project managers to recognise potential risks and prepare for them, in the event they do occur.
RISK ASSESSMENT MANAGEMENT SYSTEM (RAMS)
This tool has 3 steps; risk identification, risk evaluation and risk control.
Risk Identification
List all the possible risks of the project. There are 4 categories of risk
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Personal Safety - injuries, ill-health
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Time Delay - lack of communication, unavailable manpower
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Poor Outcomes - poor weather conditions, cultural barriers
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Cost Overrun - increase in prices
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Risk Evaluation
Weigh the likelihood of risk (probability that the risk may occur) and severity of risk (consequences of the risk, should it occur).
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After determining the likelihood and severity of the risk, create a risk map as shown below. Risk level = Severity x Likelihood
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Risk Control
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Tolerate (likelihood low, severity low) - Accept the risk, there is minimum to no mitigating factor
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Treat (likelihood high, severity low) - Reduce the risk by putting in safety measures
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Transfer (likelihood low, severity high) - Transfer the risk control to a third party
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Terminate (likelihood high, severity high) - Avoid the activities or seek alternate ways of implementation.
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Why use this tool?
Not only helps to identify risk but also weigh the severity and likelihood, which guides in the planning of mitigation plans for the risks.
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Photo by: Javihn Chan
Photo by: Javihn Chan
Photo by: Javihn Chan
HOW DID I USE THE TOOL
WHAT-IF SCENARIO ANALYSIS
Our event, Souly Earth was held virtually, hence we focused on the unexpected situations that may occur in an online setting. We questioned about the potential behaviours of participants that may lead to the programme being unpleasant and disturbing, for other participants and the project team. We listed them out and thought of ways we can prevent the issue and decided to have ground rules before we started the programmes. We also thought of ways to mitigate the situation, should it arise. As a whole, this method of risk assessment was easy to work with as it did not involve complicated charts or diagrams. After preparing the document, I felt at ease as I was more prepared on how I should deal with the unexpected situations.
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Values and Challenges of Tool
WHAT-IF SCENARIO ANALYSIS
VALUES
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Straightforward in stating the risk, its consequences and preventive measure
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Easy to use and set up especially since it does not require additional charts or tables
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It is easy to refer to in the event of a risk occurring
CHALLENGES
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The severity of risks are not explored further
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Certain risks may be overlooked as the team might not be able to foresee all possible situations
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Only useful if the right questions are asked
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The potential risks thought out are fully reliant on the team's intuition
Network Diagram
VALUES
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Covers all steps needed to mitigate a risk
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Detailed and structured which makes it straightforward to use
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Easy to refer to, everything is in the form of a table
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Set up may be time consuming and complicated
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It is difficult to understand, especially for beginners
CHALLENGES