Topic 7.15: Monitoring and controlling risk

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Monitoring and controlling risks is the process of tracking identified risks, identifying new risks, implementing risk response plans, monitoring residual risks, and evaluating risk management effectiveness throughout the project.

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Risk management becomes easier the more often it is practised.

The risk management process

The amount of time required for risk management will vary, depending on the risks that have been identified, their priority, and complexity of response.

Nonetheless, frequent discussions about risk make it more likely that people will identify and manage risks and opportunities for you!

And although some of the project planning processes are linear (for example, the WBS needs to be prepared before the schedule), others are much more dynamic.

Risk is often the confounding element.

Every time you identify a new risk (or change to an existing risk) that is above your threshold of comfort in the planning stage, the chances are that your plan – that you might have believed was complete – will need to be reworked.

Risk management reduces the red shaded area to green

This is unfortunately true of every stage of the project, but remember what we showed earlier in this program?

The cost of change is lowest at the start of the project; therefore, you would much rather discover and plan for these risks now than have them materialise as very expensive issues once you are in project execution mode.

For that reason, even though proper risk management will save you money at every point in the project lifecycle, the sooner you start, the more you save.