Some Implementation Considerations

While it is important to emphasize a comprehensive, structured risk management process, it is equally important that suitable organizational and behavioral considerations exist so that the process will be properly implemented. While no single set of guidelines will suffice, it is important that risk management roles and responsibilities be defined in the RMP and carried out in the program. For example, you need to decide (in advance) within the project:

• Which group of managers have responsibility for risk management decision-making?

• Which group "owns" and maintains the risk management process?

• Which group or individual is responsible for risk management training and assisting others in risk management implementation?

• Who identifies candidate risk issues (everyone should)?

• How are focal points assigned for a particular approved risk issue?

• How are risk analyses and risk handling plans developed and approved?

• How are risk monitoring metrics collected?

This is but a brief list of some organizational considerations for implementing risk management, which will vary depending upon the size of the project, organizational culture, degree that effective risk management is already practiced within the organization, contractual requirements, and so on. Likewise, while behavioral considerations for effective risk management will also vary on a case-by-case basis, a few key characteristics should apply for all projects.

First, risk management must be implemented in both a "top-down" and "bottom-up" manner within the project. The project manager and other decision makers should both use risk management principles in decision-making and support and encourage all others within the project to perform risk management. The project manager should generally not be the risk manager (except on perhaps very small projects), but must actively participate in risk management activities and use risk management principles in decision making. Without such active support, other project personnel will often view risk management as unimportant, and there may be insufficient encouragement to create or maintain a culture within the project to embrace risk management. Similarly, while it is important for key decision makers within the project to not "shoot the messenger" for reporting risk issues, and so on, eliminating this behavior does not in and of itself create a positive environment for performing effective risk management.

Working-level personnel are generally quick to decide whether or not decision makers are committed to risk management or merely giving it lip service. Both groups must be actively engaged for risk management to be effective.

Project Management Made Easy

Project Management Made Easy

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.

Get My Free Ebook

Post a comment