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Using Project Risk Management

May 14 2012

By using project risk management in the appropriate manner, you can save your project and the team many of the headaches involved in running a project when they are impacted by a risk. By already have a plan of action in place; you can also help prevent the costly delays of trying to figure out just how to deal with the impacted risks.

The project risk management plan is like a set of instructions that will help guide you just what to do when any of the risks that were expected to possibly impact your project have occurred. The reason there is a path to follow is because the most common risks and all of those risks already identified by the project planner have been discussed already. Planning for an impact before it occurs is the best possible way to be ready for one if and when the impact does occur.

The project risk management plan is devised during the planning stage of the project. This way the best possible way to mitigate the risks, if they do impact your project can be devised and implemented. This also allows for more options, like the purchasing of insurance to cover the financial costs of an impact before it is too late. You cannot buy insurance on a risk after it has impacted your project.

Another advantage of planning ahead with a project risk management plan is that there is no need to rush so a solution can be found. Being prepared in advance gives way to more options to be explored so the right way to mitigate the impact can occur. With more options, the best and least costly can be determined easier so the best possible result will occur.

By preparing your project risk management plan in advance, you will be able to keep your project on schedule if at all possible most of the time. Hesitating during a project is what causes delays and a plan in place to mitigate the risks will minimize these costly delays. This will help you to achieve your goal of having a successful project delivered on time and in budget more often than before.