Risk management in projects involves identifying, assessing, and controlling risks. Here is an example of a simple and easy risk management process for beginners.
Identify risks that could impact your project. There are various ways to identify risks. If applicable, do a visual inspection of the area, inspect accident / incident reports, engineering change proposals, technical publications, manuals, safety data sheets, or existing checklists. Use predictive scenarios to brainstorm hazards and risks, by using for example a 'pre-mortem' method.
Rate risks based on impact and likelihood.
Based on the rating, find out which risks are unacceptable and urgent to be mitigated.
Identify solutions against those risks which are seen as a priority. What are you already doing? What further action is necessary? Action by whom? Action by when? Assign an owner to the risk.
Communicate results from the risk assessment with your team and relevant stakeholders. Continue to monitor risks.
In addition, it is important to think about residual risks, meaning the risk that remains after mitigating the original risk. And secondary risks, which are new risks that come as a result of mitigating a risk. When avoiding, reducing or transferring a risk, often new risks are triggered.
Some risks might be considered insignificant, however as they interact with other events, or conditions, they might cause great damage, or create a significant opportunity.
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