There are six (arguably seven) strategies for managing risk. But the one that is least understood is the most powerful of all… if you can make it work: removing a risk entirely.
So, let’s survey one of the most important risk management strategies: removing project risk entirely.
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Risk Happens!
In my book, Risk Happens! there are six fundamental strategies for dealing with a project risk.
But, too often, what people describe as my Strategy Number 1, ‘Risk Removal’ is really risk reduction.
So, how can you completely remove a risk?
Removing a risk altogether is not always possible, but here are five approaches that you can consider on aspects of your project.
1. Over-design
A ‘gold-plated’ specification that is over-specified with respect to the core functionality. Examples include redundant components, over-size strength components, or higher specification materials.
2. Buy certainty
When you select components that are well tested, you can lock certainty of functionality, quality, or cost into a component of your plan.
3. Alternative solution
There may be other solutions to an element of your plan that offer complete certainty of schedule, budget, or functionality.
4. Address root cause
Root cause analysis, using techniques like Failure Mode and Effects Analysis, Pre-mortem, Fishbone, and Five Whys, can help you identify a strategy that will address the cause and remove the threat entirely.
5. Remove the risky element from your plan
If you cannot control the risk, and the threat level is unacceptable, the only thing to do is remove that element from your plan and accept the compromise this causes.
Important Note:
Note that these remove specific risks – they don’t remove all risks!
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Articles
You may also like these articles about Project Risk Management
- Ultimate Guide to Project Risk Management
- 10 Step Risk Management Kick-off for Your Project
- Indispensable Guide to the Sources of Project Risk
- The Project Manager’s Guide to Simple Risk Analysis
- Risk Response Strategies: Full & Revised Roundup
- How to Build a Robust Project Risk Culture [8 Steps]
What Kit does a Project Manager Need?
I asked Project Managers in a couple of forums what material things you need to have, to do your job as a Project Manager. They responded magnificently. I compiled their answers into a Kit list. I added my own.
Check out the Kit a Project Manager needs
Note that the links are affiliated.
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