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Importance Of Risk Management In Project Management

Adopting the right risk management strategies and risk management process will make most if not all projects less uncertain and more successful for it. Developing risk management skills and competencies will enhance every project.

Around 20 percent of senior managers and executives will never buy into risk management no matter what is presented to them. Around 20 percent totally get it and enthusiastically adopt best risk management practices for strategic operational and project decision making. We can really only add value to the majority 60 percent who sit somewhere between these two polar opposite positions on the benefits of project risk management.

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Good project risk management involves all stakeholders in the project and if implemented effectively will result in the project completing more successfully with less uncertainty.

30th June 2020 UK Government Promises To Build Build Build Its Ways Out Of The Coronavirus Pandemic Over Next 10 Years

V Shaped Economic Recovery From Coronavirus Pandemic
V Shaped Economic Recovery From Coronavirus Pandemic According To Chief Economist at Bank Of England

If we can trust politicians in the UK we can look forward to many new major taxpayer backed projects in the next 10 years

Money is so unbelievably cheap in UK just now. If now is not the right time to build build build then there never will be a right time.

24th January 2020 HS2 Project Did Not Manage Risks and Uncertainties Of Project From The Start

The Department for Transport DfT and HS2 Ltd did not allow for all uncertainties when estimating initial costs the National Audit Office NAO reports.

As the uncertainties of the HS2 project were not managed properly at the beginning of the project the cost of the project has risen from an estimated 56 billion pounds in 2015 to 106 billion pounds in 2020.

The DfT and HS2 Ltd have not adequately managed risks to taxpayer money: HS2 underestimated uncertainty and risk. By not fully and openly recognising the programmes risks from the outset DfT and HS2 Ltd have not adequately managed risks to taxpayer 

National Audit Office NAO

The HS2 project is estimated to cost nearly twice as much and will take much longer to finish. Was the undervaluation of the costs deliberate to ensure politically acceptable or was this just another example of poor project risks management?

HS2 project complexity and risks were always clearer than the current review implies. Such a project does uncover unknowns if the unknowns were deliberately not looked for knowing that the initial project viability report was not offering any guarantees.

Uncertainty about the future of HS2 is putting investment at risk as the current UK government reviews whether HS2 is value for money.

The benefits of good project risk management include

  • Proactive project risk management reduced uncertainty
  • A reduction in uncertainty buys you more time
  • Time costs money

Minimise the impact of risk on your project.

Managing project risk and uncertainty better and more successfully

Online meetings to identify assess and promote project risk management practices and ideas.

  • Discover better ways to manage project risks
  • Be inspired and learn how to improve the way you handle risk and uncertainty in a project
  • Put your project risks into perspective and benchmark or measure your risk controls against your peers controls. Taking too much or too little risk? Is that why your project is failing?
  • Learn from and with peers and project risk management experts

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