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Risk Review – Preparing for Tomorrow’s Uncertainties

Business growth and development are never without challenges, especially in their early stages. Individuals or organizations cannot predict specific risks. Organizations must, however, prepare for an uncertain and volatile future with a strong risk review framework. Business risks are rising due to various factors, including post-pandemic workplace issues, supply chain challenges, extreme weather conditions, inflation, and geopolitical turmoil. These factors make it imperative that business leaders leverage all available data to identify potential risks to their organizations. This article at ProjectSmart by Chris Wright discusses the importance of risk review initiatives.

The Common Risk Limitations

Risk review management measures are often absent or performed as an early project checklist formality. The following are the top three obstacles to project risk management:

Inconsistent risk assessment leads to the inability to handle new risks and uncertainties.The effort involved in risk analysis, planning, and reaction planning is rarely incorporated into the project’s overall plan. Risk assessment programs are given a lower priority, which puts the project or business at serious risk.Project sponsors and senior management devalue risk management activities for their projects due to uncertain advantages, which results in little buy-in and support.

Steps for a Robust Risk Review

Your risk review management efforts can become a consistent and proactive approach by implementing these three fundamental principles. They consist of the following:

Project risk management must occur at all stages of the project’s lifecycle. The relative likelihood and impact of identified risks can alter over time and can uncover uncertainties at any time. The project team must deal with uncertainty quickly and frequently throughout the project.The project manager must make risk assessment (identification and analysis) and reaction planning activities a regular event. Risk reviews can either be a topic at the weekly review meeting or a stand-alone biweekly review, depending on the project’s size, scope, and complexity. In either case, the project manager must build standardized risk management procedures into the schedule.The project manager must have excellent communication skills and should clarify task ownership, identify potential hazards, evaluate impact, and define steps for resolution with practical action plans.

To read the original article, click on https://www.projectsmart.co.uk/risk-management/project-risk-management-its-either-contingency-planning-now-or-emergency-relief-later.php

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