Using PRINCE2’s Risk Theme in Project Management

In organizations that do not use a project or risk management strategy, how is a risk often managed?
People do not like to worry about “uncertain events.” Instead, they seek to manage their ideal image of a risk-free project.

As a result, rather than proactively limiting risks, project teams tend to address the difficulties that develop as a result of a lack of risk management. It is not uncommon in this scenario for you to think when a project begins, “Oh, I need more time, resources, etc.” One of the reasons for this increased labor is that you did not account for unknown events. Essentially, by neglecting risk management, you have underestimated the scope of your project.

Risk and the risk theme in PRINCE2® have always been the most hardest ideas for people to grasp with over 20 years of project management. One issue is encouraging individuals to participate in high-risk events. To accomplish this, They move the organization’s focus from risk to risk reduction. Including this in your project scope makes risk tangible. People will begin to consider how to deal with it, taking them away from the world of “what if? ”.

Using PRINCE2 to Manage Risk

Why is having a method like PRINCE2 – with specialized risk management guidance – useful when operating projects?

According to PRINCE2, one of the first tasks to do during project commencement is to define the risk management approach. This is critical since risk identification comes before project plan definition. Depending on the project’s complexity, it also suggests keeping some sort of risk record. A simple risk register conveys a strong message: it doesn’t have to be an unending sequence of columns and ratings; in certain circumstances, a simple, brief list of risks and actions is sufficient.

And, as the project develops, you and the team learn from experience and alter the mitigations as needed, which is quite effective for risk management.

Managing Risk: Smaller vs. Larger Projects

In smaller enterprises, your limited resources are really valuable. As a result, it is suggested that the project manager be the only owner of the risk management process, with the rest of the team focusing on executing work packages that should include risk management measures. The exercise of identifying risks can be done only once, at the beginning of the project, before the project plan is established and product development begins.

The project manager decided to teach a portion of the team about new technology to mitigate a specific risk. The cause and risk were invisible to the team, which was only concerned with learning about the new tool and method. Similarly, when designing a new office project, the risks associated with timely delivery of internet connectivity and furnishings were primarily for the project manager’s risk register.

However, with larger projects, the number of risks increases, the complexity increases, and visibility for the project manager becomes more difficult, therefore risk reviews must involve the team directly. For example, in our company, building projects have visible risk registers, and risk reviews and risks are reported as major project control.

Risk Management – Reassurance for the Project Board

If you understand the key events that will change the risk profile of your project, such as placing a large order or obtaining an investment authorization, you can use these moments to engage the team in risk management conversations, making risk real for the organization and allowing it to be managed better.

Engaging with the project team and board during these critical moments allows you to understand their perspective on risk, and what you learn should be incorporated directly into the project plan. As a result, the team sees minimizing tasks. This leads them to a task-oriented approach rather than incorporating them in the risk-management process.

This is especially critical when it comes to establishing credibility with the project board. Though its members may not be involved in a project daily, they are acutely aware of the potential impact of risk on a business case.

They gain confidence and faith in the project manager and team after seeing how well it is managed.

Here at CourseMonster, we know how hard it may be to find the right time and funds for training. We provide effective training programs that enable you to select the training option that best meets the demands of your company.

For more information, please get in touch with one of our course advisers today or contact us at training@coursemonster.com