Risk Management

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Risk Management

Every sensible project model has risk management with associated risk registries and processes as a natural part of the process.

However, risk management can become a cushion where real and dangerous risks simply are discussed, noted, and accepted in a risk log without proper action being taken. And this can be described as unintentional gambling with the whole project. On the other hand, good risk management can enrich the project’s scope and success rate.

What is risk management?

Risk management is a necessary part of project management, regardless of project type.

Risks come in many forms and colours, and therefore risk management can also take the form of financial risk management or operational risk management. Regardless of the type, risk management aims to identify risks in the project portfolio and assess how these should be managed.

There are four different ways to manage a given risk:

Acceptance: The risk is considered to have little impact on the project or be "out of reach" and is therefore not addressed.
Planning: The risk is highly likely to affect the project, and one must, therefore draw up a plan of action.
Prevention: The risk is present, but can be prevented, for example, by testing the solution frequently before the project is finished.
Minimising consequences: The risk cannot be avoided, but work can be done to curb its impact.

Use proactive risk management to promote project success.

Typically, the steering group accepts risks that are either outside their decision-making mandate or for other reasons, are something they cannot control or influence.

They may also believe that a given risk is below a tacit de-minimis threshold. This is a pity because it is precisely here that proactive risk management can produce even better results in a project.

Setting the de-minimis threshold high in your risk management and drilling more into the accepted risks can minimise delays, scope changes and failed projects. Simultaneously, you elevate risk management to the management discipline it should be, rather than using it as a cushion or a standard process that simply needs to be implemented.

Risk management at Peak

At Peak, we approach risk management with a foundation based on best practices. At the same time, we are aware that the management and challenges of decision-making patterns are where risk management lifts itself out of the embrace of models and right to where the results are created.

Our approach

Our approach is to embrace settings rather than work against them.

This is where we can change the success rate of a project, one accepted risk at a time. We do this by addressing the complex aspects and, most importantly, setting the de-minimis threshold high in your risk model.

Like this, risk management becomes more than a mandatory process. It will be a form of leadership and attitude to do something about difficult situations. At Peak, we can facilitate that shift of perspectives, anchor risk governance, and train your organisation to become more aware of what you should and can do about accepted risks. In this way, we can create best practice, control the processes, maturity, and not least, peace of mind.