Project Risk management is the art and science of identifying, assigning and responding to risk throughout the life of a project and in the best interests of meeting project objectives.
Like any project, it applies to project in VT Industry as well. VT Professionals, especially Project Managers, Engineers or Supervisors can take advantage of effective Risk Management strategies, as it can often result in significant improvements in the ultimate success of projects.
Risk management helps stakeholders understand the nature of the project, involves team members in defining strengths and weaknesses and helps to integrate the other project management knowledge areas.
Risk management is a process that focusses on identifying risk events and developing strategies to respond and control risks should they occur in a project.it is not a one-time event carried out at the beginning of a project.
Risk management is a critical process in project management which is not often conducted or handled well. Defining and using a risk management process in your projects is proactive management.
Risk management allows the project manager to view the project across the life cycle to identify, assess, priorities, respond and control project risk, effective risk management increases the probability of project success by:
Preventing Surprises / Problems.
Preventing management by crisis.
Improving customer / Stakeholders’ satisfaction.
Increase profitability and competitive advantages.
Risk management can be applied to:
- Selecting Projects.
- Determining project scope.
- Developing Schedules.
- Developing cost estimates.
By identifying risks early, project managers/ engineers/ supervisors can implement measures to avoid pitfalls that could lead to project failure. This foresight is essential for maintaining project viability.
Risks can impact the quality of project deliverables. Managing these risks ensures that the final output meets the desired standards and stakeholder expectations.
Similar to a Work Breakdown Structure (WBS), Risk Breakdown Structure (RBS) categorizes risks into different levels, making it easier to identify and manage them systematically.
Delays are a common risk in project management. Recognizing potential delays in advance allows for better scheduling and time management, ensuring that deadlines are met. Unforeseen risks often result in budget overruns. Effective risk management helps in anticipating potential cost increases and finding ways to mitigate them, thus keeping the project within financial constraints.
Conclusion:
Project risk management is a crucial component of carrying out a project successfully in any Elevator or Escalator Project. Project managers can guide their projects through uncertainties and ensure they meet their objectives by methodically identifying, evaluating, and mitigating risks.
Once identified, risks need to be analysed to determine their potential impact and likelihood. This helps in prioritizing risks based on their severity. For each significant risk, develop strategies to mitigate its impact. This could include contingency plans, alternative strategies, or preventive measures.
