Risk exists for any kind of a project, irrespective of its size, complexity and other aspects. A project’s success depends heavily on its Project Manager’s ability to manage the risk. So, it is important that as a PM, you are asking all the right questions when it comes to handling risk.

1. Risk Management from Project Manager’s Perspective
Riskexistsforanykindof a project,irrespective of itssize,complexityandotheraspects.A project’s
successdependsheavilyonitsProjectManager’sabilitytomanage the risk.So,itisimportant that
as a PM, youare askingall the rightquestionswhenitcomestohandlingrisk.
Let usrun throughthishandy checklisttogauge your risk management in project management.
1) Have you createda risk matrix?
A riskmatrix isa core artefact to be preparedbythe PM, right at the start of the project.Creating
such a documentcompelsthe PMand everyone else tolookatthe projectfromdifferent
perspectives,identifythe looseendsorlive wiresandensuresthatthese detailsare recordedand
registeredforeveryone tobe aware.
2) Have you prioritizedthe risks?
Once you getyour listof risksready,prioritize themasH/M/Lor color code themif that’s yourstyle,
but make sure that notall risksdonot getthe same treatment.Fore.g.if I’mplanningabirthday
party,a fewguestsnotturningupand the foodgettingwastedisa risk,butit’sa low one,because
the party will notbe cancelleddue tothis.However,if the catererhimself doesnotturnup,well,
then,it’sa highrisk!
The reasonwe needtoprioritize risksis,let’sadmitit,managingrisksisanoverheadwhichdoesnot
contribute directlytothe projectoutput.So,it’simportantwe investourtime onthe onesthatneed
the most attention.
3) Have you assignedownersfor the risk items?
Collectiveaccountabilityisamustwhenitcomesto mitigatingrisks.The PMisnot a superherowho
can single-handedlycontrol all the risks.So,itis importanttoassigndifferentownersforthe risk
itemsandmake people aware of theirownership.
For e.g.while workingonversion1.0of a project,youwant tomake the designandthe schema
scalable,because there isascheduled2.0thatis boundto follow-upshortly.A Technical Architect
wouldmostlikelyhappentoownthisriskitem.
4) How are you planningto track the risk items?
You’ve createdthe riskmatrix,prioritizedandassignedownerstothe riskitems.Great!Twomonths
later,howwouldyouassessthe likelihoodof occurrence of thatevent?Wouldthatbe a subjective
decision?Maybe,all the stakeholdersgettogetheronce amonthto review the riskitems?What
happensif the stakeholderscannotarrive ata consensus?
One of the biggestchallengesinthe areaof riskmanagementistrackingthe risks.The Project
Manager and the otherriskownersshouldwatchoutfor earlywarningsignsthatare potential
indicators.Also,whereverpossible,itisimportanttodefine the riskiteminameasurable waysoit’s
easyto track it. (E.g.if the fuel goesdownto15%, abortthe flightandland).
For e.g.Integrationtestingisariskitemforyour projectsince youhave totest withanexternal
system.Youcan define itas – if the external systemis notreadyfortestingbyAugust,thenthe risk

2. ishighand it istime to resortto contingencyplan.These criteriacanbe draftedasearlyas the
beginningof the project.
5) How oftendo you revisitthe risk matrix?
As the projectprogresses,the landscapecanvaryto the extentthatsome risksmayjustdrop off or
theirprioritiesmaychange ornewriskitemsmaycrop up.All thisgoesto say that yourriskmatrix
has to remainupdatedandneedtobe relookedata regularinterval (preferably,weeklyor bi-
weekly)
Sometimes,it’spossible acertainriskeventhasnow occurred,whichnecessitatesyoutotake action
points.Fore.g.if a certainkeydeveloperhasleftthe firm, thismeansresource changesandthe
trainingassociatedwithgettingthe newpersonuptospeed.
6) Have you got your contingencyplans ready?
It issurprisingtosee projectswhere risksare meticulouslyidentifiedandtracked,butpeople donot
knowwhatto do whenthe eventactuallyoccurs.Whenthe actionyouneedto take isnot clear,
people startpressingthe panicbuttonandrun like headlesschicken.
A successful ProjectManagerisoftensomeonewhocankeephiscalmat the worst of situationsand
that usuallyhappenswitha) experience andb) clarityinthinkingandplanning. Evenforthe worstof
the risks,have a contingencyplanready.Fore.g.one of your requirementshasundergonea
significantchange due tothe dynamicmarkets.Itcouldjustbe that you needtobuymore time to
implementoryoumay choose toleave thisoutfor the nextphase.
7) Have you communicatedthe risks to your stakeholders?
Pickany aspectof ProjectManagementandyouwouldinvariablyadd –‘please communicate’.So,
riskis noexception.One of the positive thingsaboutcommunicatingrisksisthatpeople are aware of
the thingsthat can go wrongand whenyoupresentyourcontingencyplans,theyknow thatyou’re
readyto tackle whenthingsgowrong.So,the risksbecome calculatedrisks,whichare the onesthat
projectsneedtotake.It alsomeans the accountabilityisspreadacrossthe teamand people are
aware of the thingsto considerbefore takingadecision.
For e.g.duringa projectkick-off,amajorriskidentifiedabouthavinginsufficientbudgettoprocure
the right kindof hardware couldmake the customerrethinkaboutgoingaheadwiththe project.
Maybe,he woulddeferittill the budgetismade available.Although,itmayappeartobe a failure,it
wouldworkoutin the long-term,because the projectmaynotyieldthe expectedresultswithoutof
date hardware.
Thishandychecklistshouldhelpyoudeal withthe projectrisks.A final partingthought –a Project
Manager shouldneverconsiderrisksasa personal successora failure.Some of the riskscanevenbe
‘goodrisks’.If youare able to lookat the riskmatrix impartially,itismore likelythatyou’ll be able to
manage it better.
To read more on howto thinkfroma ProjectManager’sperspective,clickhere:
https://www.edupristine.com/blog/risk-management-from-project-managers-perspective