CMI 513 - LO 3.3 Presentation.pdf

Level 5 Managing Projects to Achieve Results Learning Outcome 3.3 Examine approaches to identify, manage and mitigate project risks LO 3.3 Identifying, managing and mitigating risk How do you identify, manage and mitigate risks in projects? Effective risk ma...

Level 5 Managing Projects to Achieve Results Learning Outcome 3.3 Examine approaches to identify, manage and mitigate project risks LO 3.3 Identifying, managing and mitigating risk How do you identify, manage and mitigate risks in projects? Effective risk management is crucial for the success of any project. Identifying and managing risks involves anticipating potential issues that could impact project objectives, monitoring and controlling costs related to expected and unexpected losses and evaluating the net social cost benefit. Key strategies include employing risk mitigation techniques such as improving ICT systems and procedures, up-skilling staff to handle complex tasks, and avoiding high-risk activities. Monitoring risks through effective reporting mechanisms and involving senior management ensures continuous oversight and timely interventions. How do you identify, manage and mitigate risks in projects? Techniques like stress testing and event analysis further help understand potential impacts and prepare for adverse scenarios. Mitigating risks involves strategies to reduce the likelihood or impact of identified risks. This can include transferring risk through insurance policies or alternative risk transfer methods, developing contingency and disaster recovery plans, and avoiding or minimising exposure to high risks. Proactive measures such as risk prevention and prediction help identify potential issues early and take corrective actions before they escalate. How do you identify, manage and mitigate risks in projects? By integrating these practices, project managers can ensure that risks are effectively managed, safeguarding the project’s success and enhancing resilience against unforeseen challenges. Over the following pages, you will find a review of these approaches. Do you take the risk? This chapter starts by looking at the nature and origins of risk and then moves on to see how risk figures in, and is important to, the process of leading people. Finally, you’ll take a look at the risk management process– its steps of identifying, analysing, evaluating and treating risk. CMI has provided a chapter in the book on risk-taking. Click the link below to access this in Management Direct. >>> Do you take the risk? >> Checklist - Risk management