Project Management is one of the most dominant jobs in the IT industry today, you can enter any big organization and would rarely find them without professional Project Managers, or not in need of Project Managers.  Whether it be through the jobs on the internet or the curriculum in colleges, the industry as a whole has started recognizing it as a job position that requires skilled and experienced individuals. 

With the position that Project Management has acquired in the corporate world these days, the risks and threats to this growing field are increasing as well. Project Management is one of the most important job positions in the IT industry today because of the expansion of the field, and any field of such evolving nature is subject to constant threats of varied nature.

These risks affect the reliability of Project Management, and that is exactly what we need Project Risk Management for. The risks to Project Management are versatile and constant, and good  Project Risk Management skills can help you deal with them immediately and effectively, without panicking and wasting time or resources. It is as crucial a part as any else because it directly impacts the image of the organization and reflects on the work culture of the organization in the industry. 

What is the need?

In 2018, an assessment by PMI showed that more than 50% of projects saw failure by organizations that did not give sufficient importance to Project Management. This led to a loss at the financial level and affected the spirit of the employees as well. On the other hand, projects by organizations that valued Project Management and gave the importance of its practice saw an increase from 34% to 89% in their success rate for projects. So the statistical for of efficient Project Management cannot be denied in the industry. The statistics establish how big a part Project Management plays in the success of a project, no matter the size of the project or the trends in the market.

Project Risk Management is one such important part of Project Management, without which it is nearly impossible to deliver in-time quality products. It is required at different stages of Project Management, whether it be planning, implementing, executing, or monitoring. A project can be subject to risks at any stage, and no matter how efficient the planning or the management is, if the risk is not dealt with effectively, it can impact the process and outcome of the entire project. So Project Risk Management is a very crucial element that is needed to execute a project successfully and to establish the credibility and reliability of the organization in the market. 

Process of Project Risk Management

When faced with risks in any situation, the first thing that a person does to deal with it is to devise a plan, and the next thing they do is to work on it. This is exactly the basic framework that Project Risk Management follows, which is customized depending upon the need of the situation and the project. 

The process of Project Risk Management starts first and foremost by devising a plan to identify any risks that the project can be vulnerable to, and then planning an effective control measure to deal with such risk. The process is not set in stone, because every risk needs to be dealt with accordingly, and this flexibility of the process allows the professional to address the issues and respond according to the need. The process of Project Risk Management is thus ever-evolving and has a lot of scope for aspiring professionals to make a career in the field. 

After identification of the risk, the risk is assessed, evaluated, analyzed, and managed by professionals who determine the extent of the impact of the risk and monitor its effects. It is then further dealt with and feedback of the entire process is obtained. This system of dealing with the risk is structured, organized, and gives the professional the time and resources to deal with the issues efficiently. It has proven a successful process of Project Risk Management for the software industry in the past, and being a skilled professional in the field can be beneficial for you in the long run.

Steps in Project Risk Management

The steps in Project Risk Management can be broadly divided into six steps: Planning, Identification, Assessment, Strategizing, Response, and Record. Each step is unique and forms an integral part of the Project Risk Management process.

Planning: 

This is the first step of the process, and it helps in identifying the risks that the project can face through different techniques. An effective plan is devised keeping in mind the various factors that the project is dependent on, so the identification and narrowing down of the risk becomes much easier. A project that is planned systematically also helps save time and resources in risk management.

Identification:

This stage requires the professional to identify the nature of the risk and to come up with solutions accordingly. There are a variety of risks that a project can face, and identifying them correctly and in time is necessary for the entire process that follows. There can be risks of legal, financial, market, or any other nature and it’s important to know their nature to develop strategies. 

Assessment:

After the risk is identified, the risk management professional needs to assess the risk and its repercussions. This assessment requires knowing the size of the risk, the area that it could impact, and the productivity that it could hamper. Determination of the scope and the severity of the risk can help the team come up with effective solutions suitable and needed at the time. A structured analysis forms the backbone of efficient Project Risk Management.

Strategizing:

Strategizing is one of the most important aspects of planning on how to deal with the risk. Developing strategies speeds up the process and creates a structured system where everyone’s capabilities can be used to their full potential. For creating a strategy, you need to prioritize the risks and then assign professionals that are best capable of handling them. Strategies form the foundation of the response process and help create a system that deploys the resources efficiently and ensures successful deliveries. 

Response:

An effective response ensures that the risk is eliminated and is done so keeping in mind the needs and opinions of the relevant members to whom the product concerns. Proper training in Project Risk Management leads to proper handling of the risks, and the solution is updated to make the initial project better. 

Record:

This final step requires the professionals to monitor the risks even after the solution is found to keep a record for future reference. This step also includes the feedback of the entire Project Risk Management process to establish the proficiency of the professionals. This helps the organization to maintain its standards in the market and to keep an eye on the risks that constantly change and evolve, to deliver the project smoothly.

Scope in the field

The Project Management job position requires skilled professionals who are thorough in theoretical and practical aspects of Project Risk Management. It forms an integral part of the process because it is necessary at every executive step in any project. Apart from Project Management, it also comes in handy at other job positions such as Developers and Engineers because the principles are universal to the management field. 

So, any individual looking to make a career in Project Management should be familiar with the risks that it can face and be capable of handling them. A credible certification goes a long way, no matter what field, and keeping in mind the demand of such professionals in the industry, it can prove a determining milestone in your career.

What it aims to achieve

According to PMI, by the end of 2020, approximately 15.7 million new job positions were set to open up in the Project Management industry. This shows that the industry aims to expand its horizon beyond the conventional roles of IT, and simultaneously enhance the quality of the products that are delivered. It also shows that the industry is creating a huge job market full of opportunities, and professionals who are willing to invest their skills in it will have multiple chances to build a fulfilling career.

The Project Risk Management industry aims to create a more structured and organized workflow in the organization so that productivity is improved and profit can be multiplied. Usage of systemized Project Management techniques leads to highly successful projects and reduces the chances of risks which enhances the credibility of the organization.

Consistent use of practices that are tested and built by professionals creates a framework that makes risk assessment much easier, thus making everyone’s job easier. At the end of the day, efficient project risk assessment leads to better quality products and client relations which enhances the value of the industry as a whole. 

Simpliaxis is one of the leading professional certification training providers in the world offering multiple courses related to Project. We offer numerous Project related courses such as  Project Management Professional (PMP)® Certification Training, Project Management Techniques Training, PRINCE2® Foundation and Practitioner Certification Training, PRINCE2® Foundation Certification Training, PRINCE2® Practitioner Certification Training, Certified Associate in Project Management (CAPM®) Certification Training, PRINCE2 Agile® Foundation Certification Training, PRINCE2 Agile® Practitioner Certification Training, Primavera P6 v 20.12 certification training, PRINCE2 Agile Foundation and Practitioner Certification Training, Project Management Fundamental Training   and much more. Simpliaxis delivers training to both individuals and corporate groups through instructor-led classroom and online virtual sessions.