Risk Management 101: Planning

July 31, 2015
In this video we look at the first and most important aspect of risk management when it comes to planning a project - planning for risks. FREE Project Management EBOOK for new project managers. DOWNLOAD HERE: http://www.easyprojects.net/ebook/ Don't forget to check out our Blog on project management to learn more: http://www.easyprojects.net/blog/ Video Transcript: When you hear Risk Management, Risk Mitigation or Risk Registers it might sound complicated and scary. Well, it should not be. Risk management is simply the process of planning ahead in order to eliminate or reduce threats to your project success. This process usually consists of three phases: Planning for Risks Monitoring Risks Handling Risks Today we will talk about the first phase - Planning for Risks. If something can go wrong, it will go wrong. The famous Murphy’s law proved to be true for many of us. However If you cannot avoid problems - you can anticipate them. Let’s say we are planning a user conference. We have our venue booked, catering ordered and badges printed. We are all set - time to relax. Riiiiight…. Before you do that, we have to put together a list all things that can go wrong and how we will handle such problems. Here are some best practices for this process: Step 1: let’s break down the different aspects involved in putting a user conference together, for example: Venue Guests Entertainment Food Marketing Etc. This will make it easier for us to identify possible risks for each group. Step 2: don’t do it alone. Get your team or co-workers together to brainstorm. Another best practice is to seek out experts or your peers in other organizations who have had to organize similar events and talk to them about their experience and what they did to mitigate major risks. You’ll be amazed how many great ideas and advice you can get just by asking nicely. Step 3: Once you have your list of risks - you need to come up with your response and mitigation for each item. Be specific and as detailed as possible. When all hell breaks loose - you and your team won’t have time to think, you’ll have to act quickly according to the plan. That’s why army or first response units rely on checklists.This strategy literally saves lives. When you’re done, you’ll have a list similar to this (slide) that covers all possible risks and appropriate responses. Step 4 (optional): If you want to be really fancy (and earn extra points from your boss) you can also rate each risk by its impact and probability as well as mention affected impact area. In this case your list of risks, often called Risk Register, might look like this (slide): You will find download links to the sample templates underneath this video in the description. And there you have it - it wasn’t hard, was it?
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