Project management at its best requires a thorough analysis and understanding of the risks inherent in each project. This deep analysis allows for efficient and proactive handling of risks and is a precondition for projects to stay on budget and on deadline.
Risk analysis takes place on two different levels. They are:
- Individualized Risk – This analysis examines the causes and effects of each risk as determined in the pre-project risk assessment. Starting with potential causes, this analysis takes into consideration the actions and/or events which can foster a risk occurrence. Listing potential causes for risk occurrences and the way they should be handled if they occur can decrease or eliminate their potential to damage the project. Assessing the effects of risks would include estimating the level of harm over several categories such as costs, time, overall efficiency, and quality of the end product.
- Project-wide Risk – This analysis assesses risk over the project in its entirety. The total budget, completion date, necessary resources and risk occurrence contingencies are taken into consideration in this analysis. With the determination of project-wide risks, simulations and projections can be developed to show the potential for the project to come in on time and on budget.
The information gained in these risk assessments can provide valuable insights into the upcoming project by delineating risks prior to their occurrence as well as the most effective ways to handle them should they materialize. Additionally, assessing these risks as they affect each other typically provides optimized solutions which go into effect faster and can also shed light on new opportunities. The time spent on these assessments, especially with an experienced team such as the one led by Dmitrij Harder at Solvo Group can provide huge returns in terms of cost, time and resources.