Less Well-known Benefits of Risk Management
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Project management disciplines such as risk management bring control to a project. In addition to the well-known benefits of these disciplines, they provide other benefits that aren’t often discussed or recognized. Here are a few additional benefits that risk management provides:
Encourages optimism. Thinking about what could go wrong increases optimism? It seems counter-intuitive, and yet it does! Plans for responding to risks can encourage the team. Whatever may arise, you have already identified an action to take! In addition, planning for positive risks (also called opportunities) can increase the chance of good things happening and ensure that you make the most of them when they do. That’s certainly cause for optimism!
Reduces pressure. Project managers face enough pressure without having to develop solutions to issues on a moment’s notice. With risk management, you will have pre-planned responses to events that occur: you’re ready to execute the plan so the team can take action quickly.
Even if a problem arises that isn’t in your risk management plan, a team that’s used to managing risk can jump in to discuss alternatives and develop responses. You do not have to deal with it alone!
Identifies possibilities. Productive risk identification and response planning meetings can unearth more than doom and gloom responses. You might launch risk-reducing actions proactively, which not only addresses risks, but can also increase project value. For example, say you proactively engage a skilled resource to reduce risk. That person’s skill and experience might uncover possible solutions that expand the value the project delivers to the business.
Increases focus on outcomes. Focusing the project team on risk regularly during status meetings keeps the project purpose front of mind. While project team members naturally focus on their specific tasks, risk management provides focus on what might jeopardize project outcomes, and how team members can work with each other and management to produce project outcomes as planned.
Have you come across other benefits of risk management that aren’t typically discussed?
For more about risk management, check out Bob McGannon’s Project Management Foundations: Risk course.
