Project Management Software

Project Risk Management: Continuous v. Non-continuous Risk Assessment

Risk management is a term that his used to describe a number of situations. In nearly every profession and line of work, risk assessment and management of possible risks is an integral part of the job. There are people, especially with the advent of the Homeland Security Department, who do nothing but assess and then attempt to manage risk. From a project management standpoint, risk assessment and management has a similar meaning and purpose. The idea is to figure out what possible risks of adverse affects or unplanned-for problems might come up in the course of a project and then move to mitigate them through management measures. In order to effectively answer the challenge of managing risks, the project manager must understand what could go wrong, as well as be open to suggestions from team members about what might be going wrong.

There are two main types of risk management related to project management: continuous and non-continuous. Each type has defining characteristics, as well as ways that risk is handled. However, it is important to note that the most effective way to manage risk is, in fact, with continuous risk management. The distinction could mean the difference between barely surviving a project or turning it into a rousing success.

Non-continuous risk management. A project manager who follows this philosophy of project risk management only looks at major risks once. While there is always a certain amount of evaluation throughout a project, an explicit look at risk is only completed once, near the beginning of the project. Another assessment may take place as the project nears its midpoint, but other than that, risk management is not addressed. Risks that are foreseeable at the initial stage or planning stage are mitigated, but no real look at risk occurs past that point.

Continuous risk management. This philosophy of risk management as part of effective project management requires that the project manager and her or his team evaluate risk and work to manage it on a regular basis. Throughout the project, as new stages are completed and begun, risk assessments take place and possible risks are planned for. This does not mean that the proposed risk will actually be realized, but it does allow for a set course of action, allowing the project manager to be prepared to solve problems as they happen (or even before!).

The advantages to continuous risk management are that project managers and team members carry through knowing what might possibly happen. Therefore, they are able to resolve possible risks before they become real problems, and they are able to mitigate some of the possibly negative effects. When risk assessments are non-continuous, only done once or twice, unforeseen risks can arise that turn into problems that cannot be handled as effectively.

There are companies that make project management software that can help analyze risk and provide warning. The use of such software to aid in the process of project management can help project managers more effectively lead their teams to the successful accomplishment of project objectives.

Article by Remedysoft, Inc.
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