Risk Management - standard ways to handle risks

Once you have identified and analyzed the risks of your project you need to plan the tasks to fix or mitigate them

There are four standard ways to handle a risk:

Avoid – prevent a risk, it won´t hurt your project. When it´s not possible to avoid a risk you need to analyze it.

Mitigate - if you can´t avoid the risk, take action to mitigate the effects and try to avoid a high damage to your project.

Transfer - pay someone else to accept the risk for you.

Accept – when you can´t avoid, mitigate or transfer the risk, you have to accept it.

The risk management plan is how to handle risks in your project. It documents how to assess the risk, who is responsible and how to mitigate it.

The impact tells you how much damage the risk will cause.

Risk Management Plan tool

How can we monitor risks?

Tracking risk plans for major changes

Status reports for project management

Review risks

Close risks whose likelihood became low

Risk Analysis report

Can we use a contingency plan?

A contingency plan is esentially a plan B, a backup plan when things don´t go as good as expected and a risk becomes a reality.

A contingency plan is a component of risk management and it can only be created for identified risks. If you don´t know what your risk is, is impossible to plan for it.

THINK OF A CONTINGENCY PLAN AS THE LAST LINE OF DEFENCE

All stakeholders of the project/organization must be aware of the contingency plan in order to use it.

Ready to turn theory into practice? 🚀

🔔I've created an Excel template to help you. It includes a detailed risk management checklist and an interactive dashboard to track your risk status at a glance.

Risk_Management_Checklist_Dashboard.xlsx

Descargar XLSX • 80KB

How do you manage risks in your project? I would love to hear your thoughts!