Chapter 8: Managing Risks

Control Risks

Risk control includes implementing risk response plans and monitoring risks. Risk response plans should be implemented as appropriate when their trigger point is reached. Implementing risk response plans often requires spending additional materials and so forth. Project prices and budges should include a contingency reserve to pay for additional costs associated with implementing response plans.

Risk monitoring involves regularly reviewing the risk assessment matrix throughout the project. During the project, it is important to regularly review and evaluate all risks to determine if there are any changes to the likelihood of occurrence or the potential impact of any risks. These factors can determine if a particular risk has increased in priority for attention or if the risk has diminished in importance. Furthermore, new risks may be identified that were not considered as risks earlier in the project but now need to be added to the risk assessment matrix. For example, early tests of the prototype f a new product indicate the product may now not meet the original performance specifications.  Another situation may be that because of previous delays in the design phase, the construction phase of a facility expansion is now scheduled to take place in the middle of the hurricane season. During a project, the customer may initiate changes to the project work scope, schedule, or budget that could affect the assessment of previously defined risks or result in the identification of new risks.

Project meetings are good forum for regularly reviewing, updating, and addressing risks. The agenda for project status review meetings should include an item regarding risk assessment. Particular attention should be given to reviewing the trigger points for each risk to determine if any risk response plans ore on the verge of having to be implemented.