Risk Management in Projects

The goal of the first part of the workshop is to introduce the key elements of risk management and to show participants how to set the scene for managing risk in a specific project.

We will begin by defining what do we mean by “risk” and when risk management should be applied. We will also discuss the potential impact of risks on the core plans of the project (including schedule and budget) and on its profitability.

As soon as we’ll have a common understanding in these areas, we’ll start setting the scene for risk management in a particular project. The first step will be to understand the sponsor’s and other stakeholder’s risk attitude: their tolerance limits and potential appetite. Participants will also learn how to define risk categories, delegate risk management and choose appropriate methods of risk identification.

The second part of the workshop focuses on one of the key activities from the perspective of risk management: effective identification of opportunities and threats. We will also have a look at the tool used in everyday work with risk: the risk register.

We will begin by applying tools for root cause analysis to the risks identified by participants. We will also clarify those risks by using risk metalanguage. This will significantly increase our ability to define concrete responses at later stages. As a result, we will have an initial content of our risk registers for case projects.

The participants will not only learn about the methods of identifying and specifying threats, but they will also get a good understanding how to identify opportunities (e.g., to shorten the timeline or bring some savings).

Now it’s the time to assess, prioritize and define initial strategies for the opportunities and threats identified in previous steps.

The previously identified and clearly described risks will be placed on the probability/impact matrix and discussed in terms of priorities, further actions and communication with key stakeholders (sponsor, client). We will also analyze other important risk parameters that may have a significant impact on our subsequent response to them. Apart from probability and impact, you will learn how to assess proximity, urgency, detectability, dormancy, manageability, controllability, connectivity, strategic impact and impact on stakeholders (propinquity).

Participants will learn how to communicate the risk situation and properly focus their attention on those that have the greatest impact on the project and/or require most urgent action.

The last part of the workshop brings us to the moment when we can define and implement responses to the previously identified and assessed risks.

We will start by discussing standard approaches to managing the impact and/or probability of risks. Participants will learn what they should be careful about and how actions taken towards risks might bring new ones to the table.

We will finish workshop exercises by identifying actionable responses to already identified risks. The key here will be to assess to what extent each of these responses proactively protects the project from threats and their effects or allows participants to effectively exploit the opportunities.

The final discussion will cover the topic of risk monitoring and ways to implement risk management culture. These are important elements that let the risk management become a part of a daily work.