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How to Manage Project Risks and Issues

Learn How to Manage Project Risks and Issues in 5 Smooth Steps

Managing project risks and issues can alone guarantee the successful completion of a project and earn the company its desired revenue. In this article, we shall learn how to do it.
Workspirited Staff
Last Updated: Mar 10, 2018
Efficient project management is the key to success in today's competitive work environment. In all business administration related books and courses, you will find content on project risk and issues which makes understanding these concepts very important. So, let us get the basics regarding these concepts cleared.

Project Risks
Many management experts define a project risk as a future project issue. This means that it is a problem which might affect the project in the coming future. Neglecting project risks can be dangerous for project completion on time. If a project manager can identify project risks on time, then he would certainly be able to save a lot of money and time which can be used fruitfully to maximize gains for the firm.

Project Issues
A project issue is a problem which is affecting the project currently. Dealing with project issues immediately becomes important to make sure that work on the project does not come to a standstill and clients get their solutions on time.

Managing Project Risks
In our discussion of how to manage project risks and issues, let us know the techniques of risk management first.

Know Various Types of Risks
Knowing various types of risks is essential to deal with risks immediately. These standard risks are as follows:
  • Inherent risk: Inherent risk is the risk which is always present around your work premises and can affect your project greatly.
  • Project specific risk: Project specific risks are risks particularly associated with your business/project.
  • Stage risk: Project completion is done in different stages and risks at any of these stages is the 'stage risk'.
Risk Identification and Analysis
In order to manage risks, their proper identification is very essential. A project manager has to identify potential risks very early that can be a big threat and try to understand what kind of effect they can have on the project. For this, conducting a detailed research by studying market changes, risks which occurred in the past, is necessary.

Risk Communication
Risk management is not a one man job. It requires the entire team to think of ways to deal with risks. So, communicating about risks with the rest of the team becomes essential for a project manager. This is one of the basics of risk management which you should never neglect.

Prioritizing Risks
When project manager and his team discovers probable risks for the project, then they will find that some risks are more serious than the other risks. Naturally, the focus should be on dealing with bigger risks first. Prioritizing risks is a part of effective corporate management.

Risk Solution
Just risk identification and analysis is not enough; managers need to find effective solution to deal with these risks that can affect business in the future. The solutions for risks should be permanent which would show results and help a firm protect its business.

Managing Project Issues
As mentioned above, project issues are problems which we have to encounter during the project. In other words, 'issues' are something which have already happened. For managing issues, the management needs to have an action plan in place. The action plan should be a well thought one, and should be feasible to carry out immediately to get out of the difficult situation. Project managers might have to deal with multiple issues at times and hence, using improvised technology would be the best possible solution to solve issues quickly. As mentioned already, issues are risks in the present and hence, the measures for project risk management can be used to deal with issues too. The only thing is that time to react and get the job done is very less in case of resolving issues. The following are the standard sets of issues that might erupt in a project:
  • Change in the scope of a project
  • Concerns about project quality
  • Factual/technical errors in project completion
Risk mitigation is the key to deal with risks whereas an action plan for project issues will help the team complete a project on time. By being thorough with these project management concepts, you will be able to expand your company's business and achieve your set goals. Good luck!