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Reduce the likelihood of a “what if” risk turning into a serious problem

In our last blog ‘Careful planning will help you do more with less’, we discussed the importance of planning for effective project, programme and portfolio management.

In this blog, we’re going to explore risk management, which involves risk identification, analysis, response planning, mitigation, monitoring and control.

Which is crucial in helping your teams to anticipate and promptly address potential issues that could impact project success.

Why is it important?

Risk management is important for all organisations, but for the public sector it is even more critical, as all departments are accountable to taxpayers and citizens.

Which is why they need be vigilant in ensuring resources are utilised wisely and public funds are protected from losses, that could result from unforeseen circumstances or poor decision-making. Also, public sector organisations need to consider that ineffective risk management could result in them being unable to deliver vital public services and ensure public safety and security. All of which can impact the trust and confidence that people have in them.

The benefits of effective risk management

When risks turn into problems, they can cause huge delays, increase financial costs significantly or can even be terminal for your project. So, first and foremost, good risk management skills will help to reduce the likelihood of a “what if” turning into a serious problem that will need solving.

But if this does happen, another aspect of risk management is to help you anticipate how much of an impact a potential risk could have on your project – and what should be done about it.

Risk management also involves establishing mitigation strategies and contingency plans. Which enables project, programme, and portfolio managers to reduce the likelihood of a risk becoming an issue and put a back-up plan in place to help you deal with any negative consequences if it does.

Some signs that your teams need to improve their risk management skills

Here are some potential signs to look out for:

  • Reactive approach: You find that your teams are frequently managing unexpected issues, dealing with lastminute setbacks and reacting to risks after they’ve already turned into problems
  • Inaccurate risk assessment: Teams frequently underestimate or overestimate the extent to which a risk will impact projects, if it turns into a problem
  • Difficulty monitoring: Teams find it difficult to monitor, track and review risks throughout the project lifecycle
  • Lack of communication: Teams and stakeholders often aren’t fully informed about the identified risks and any mitigating strategies that have been put in place

How can ILX help?

Our Learning Hub is our complete digital learning solution for all your project, programme, and portfolio management training needs. Watch our webinar ‘Maximising Efficiency Key project management skills to help you do more with less’ to learn more about the importance of risk management, and how the ILX Learning Hub can support you and your team.