As with any project management process, there are always challenges and things to be on the lookout for. Let's first review the four general problems that are typical with managing project risk:
• Undetected risks These are the risks that will get you, because you didn't even see them coming. The most common reasons for this are project managers not having the proper risk management mindset, project team members not raising awareness to specific risk factors, and planning defects that are not detected.
• Unacknowledged risks This occurs in dysfunctional organizations or in immature project management organizations. For whatever reason, often political in nature, an obvious risk factor is not formally acknowledged, and as a result properly managed. This is the proverbial "elephant sitting in the middle of the living room." A common example of this is an impossible schedule deadline.
• Not enough process It is not uncommon to see this area of project management totally ignored, at least from a systematic standpoint.
• Too much process On the other end of the spectrum, I have often seen gung-ho, analytical project managers over-do the risk management process. They can spend so much time here that planning is never completed, or they get so focused on risks that they become so cautious and won't take on any chances. Rememberproject risk management is not about "avoiding" all risks.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.