Archive for Risk

‘Garbage In, Garbage Out’ Project Risk Management

How many projects fail and had to be rescued by cleverly engineered ‘garbage excuses’?

In my years as a project manager and an insurance manager, more than 90% of projects fail to be completed as expected especially when considering the originally agreed period and to the specified quality of performance.

clip_image001Project managers often manage to get away from blame by ‘thick technical report’ which shift any blame to act of god incidence, unpredictable weather condition, bureaucratic approving authorities, unforeseen escalation of prices, unexpected soil condition and whatever else excuses which sound rational to the higher management.

There is no doubt that failure is inherent to a project and failure is the name of the game.  However, we have to define what do we mean by failure and to understand failure from other team members involve in the project. What is common is my experience are things which are not given serious attention during the initial project approval process.

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Part 4: Be a Mindful Risk Manager

As a manager at work, almost everything we do involves some kind risk the need to be cautious: 

  • Your customers are no longer happy with what they are satisfied with just last year.
  • A company that used to be new, small and mediocre, is now your key competitor.
  • You had to deal with things outside your control which is delaying your projects but your boss and client expect you to find a quick solution to meet for them to meet their key performance indicators.

imageWith risk management planning and a documented risk assessment process, you may confidently say that you have done your best with actions such as:

  • Assess how bad can a risk can turn out to be.
  • Have some options to minimize any disruptions.
  • Decide which option would be more cost-effective and make common sense.
 

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Part 3: Be A Better Project Manager

HOW TO IDENTIFY PROJECT RISKS?

imageIt only make logical sense for a rational person to know what is good and what is not.  As the saying goes, if you fail to identify a risk, you will not be able to manage it.

Any unknown good or possible bad event would be called uncertainties, and I am sure you are familiar with risk preparation strategies such as:

  • Saving for old age.
  • Exercise and eating balance diet for health.
  • Careful driving to avoid road accident.
  • Careful talk to avoid hurting other people feeling.

The same personal preparation we make in our daily life, also applies in a more formal way for managing projects. 

Unknown risks means dangers waiting to happen, causing delay, cost increase, poor quality works and consequences which you are not prepared to face.  With that, you would want to know:

  1. Which risk might be most destructive.
  2. What is the characteristics of the risks.
  3. How to respond to the risks.

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