Monitoring ARE: · Project Risk Response Audits ·

Monitoring & Controlling Risks – Summary

THE 4
MAIN PILLARS OF RISK MANAGEMENT PROCESS INCLUDE:

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·        
Risk
Identification

·        
Risk
impact assessment

·        
Risk
prioritization analysis

·        
Risk
mitigation, Planning, Implementation, and Progress Monitoring

The entire process of identifying risks from
the early stage of the project and effectively controlling it as well involves many
steps starting from identifying and tracking those risks, monitoring the
residual risks left, identify new risks that come up, ensure that all plans to
control risks are well implemented and executed in an orderly manner as well.

One of the main
purposes monitoring risks is not only to smoothly implement all the risk
responsive plans efficiently and effectively but also keep a track of the new
risks that come up and changes in risk exposure (scope changes). While
monitoring and controlling risks, one needs to always have responses for new
risks in an unplanned manner, have workaround plans and corrective remedial
measures to workaround them. Some of the key factors involved in successfully
combating risks include effective and clear communication between all the
members involved in the project, have a backup/contingency plan ready for scope
creep changes and through/well documented analysis of risk rankings involved.

A FEW OF THE METHODS PRESENT FOR
MONITORING AND CONTROLLING RISKS ARE:

·        
Project Risk Response Audits

·        
Periodic Project Risk Reviews

·        
Earned Value Analysis

·        
Technical Performance Measurement

·        
Additional Risk Response Planning

EARNED VALUE MANAGEMENT:

One of the most
commonly used methods to measure and report performance is Earned Value
Management and helps in assessing the project team performance by including Scope,
Cost and. Schedule. Concepts like Planned Value (PV), Earned Value (EV) and Actual
Cost (AC) must be kept mind as one progresses on monitoring and controlling
risk factors.

Project Risks
can be closed as and when the risks can no longer be in effect and can happen. Also,
the PM and the team members should go through the Risk Control Board for changes
to be implemented (Scope Creep) and then closed accordingly after being updated
in the Risk Management Plan.

In case of a
few open risks that’s till exist after the project is closed, they have to be handed
over to the assigned operations manager in a formal meeting where in all the
team members along with the stakeholders would be present as well.

 

LESSONS
LEARNT FROM THE WHOLE PROJECT AT THE TIME OF WRAPPING UP AND CLOSING ALL RISKS:

This is the
most important part of the entire process and should be conducted in an
organized and neat manner. Everyone who involved and contributed in the whole
team should be a part of it including the PM, Stakeholders, team members and
one and all. In this way one can go through over the lessons learnt and goals accomplished.
In this manner, the entire team can learn from the mistakes made and avoid
repeating the same one again for the future. All the key points should be well
documented and organized in a risk register repository for future use by anyone
and everyone involved in the projects of the firm.

 A few key points and questions for the
discussion for the meeting are:

·        
How was
change identified and managed (scope creep) through the project?

·        
What were
the new risks that occurred during the course and duration of the project which
were unexpected?

·        
In
retrospection, what are the steps that could have been taken early on to anticipate
these risks?

·        
Were all
the risks identified and mitigated in an orderly fashion?

·        
What
were the key lessons leant risk management which would serve as lesson for the
future projects?

 

REFERENCES:

Monitoring & Controlling
Risks – Lecture Notes of Professor John Clarke, PMGT 530-51-2017/Late Fall –
Procurement, Contracts and Risk Mgt.