Risk Management allows you to identify the dangers and opportunities related to a project. Consequently, it allows you to reduce the negative impacts. But also to capitalize on opportunities throughout your project’s life cycle. Projects are becoming more and more complex. It is then recommended to proceed with a risk identification and management plan, regardless of the phase. Risk management is nowadays used in practice during the different phases of a project. However, its use requires a good methodology in order to achieve significant benefits for the clients or companies concerned.
Project risk management requires anticipation, vigilance, and a real adaptation to the realities of the field. It is in this context that a risk management plan is necessary. Thus, the mastery of risk analysis tools is is advantageous when conducting risk analyses.
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Managing risks and unknowns is important for the success of deals before they are signed and for projects after they are started.
Assessing risks significantly reduces the probability of failure (cost overruns, delays…). It also favors the success of projects within their contractual deadlines. It is therefore essential to anticipate by identifying the areas of the project where risks are concentrated. The objective is then to implement measures to mitigate them. Risk simulation tools allow you to estimate the relevance of a preventive measure by comparing its cost to the benefit it could bring.
Steps to manage project risks and uncertainties :
1. Organization and planning of risk management in a project
Establish a risk management plan or process that will bring all stakeholders up to speed. It is then necessary to define the objectives of your projects but also to describe the modalities and methods of risk management.
2. Identify the risks and uncertainties of your projects
Identify and document, in a risk register, their characteristics using a risk grid. It is recommended to work with a risk management tool such as Primavera Risk Analysis, Safran, or Deltek Acumen Risk.
3. Implement the qualitative risk analysis
Using the information gathered during the risk identification process, set up a hierarchy of risks based on how likely they are to happen and how bad their effects will be.
4. Implement Quantitative Risk Analysis
This step is called pre-mitigation – numerically assessing and analyzing risks, using the Primavera Risk Analysis tool, for example, to quantify the impacts and effects on the project’s time and financial objectives.
5. Establish a risk response plan
This step is called post mitigation – putting in place action plans that incorporate effective solutions to mitigate risks and exploit opportunities.
6. Track and monitor risks
Update the list of risks and reassess them. Adapt the risk response plan as risks change.
Our consultants will provide you with their expertise in the use of this software which is perfectly adapted to risk management. They will also provide you with operational assistance when making commitment decisions.
Combining the two skills is essential to ensure the security of your industrial projects. A well conducted risk management will allow you to be one step ahead when managing complex projects.
Our follow-up of the PMBOK method ensures your projects an anticipation and an optimal risk management.
Our experts benefit from a field experience and a multi-sector experience. They are also qualified to accompany you during any phase of the life cycle of your projects.