Projects do not go on for years now, nor should your risk management process. You need to make it more dynamic and encourage the continual adoption of new ideas. In this article at Thinking Portfolio, learn about the seven metrics that will help you course-correct your risk management process.
Qualitative Risk Management Process
Metrics add value to your projects by displaying the gaps in performance. Find out what is lacking in your risk management process with the following seven metrics:
Risks Identified: How many risks have you found out that will inevitably impact the project? If you have correctly identified the risks, the numbers will decrease as you move further into the project lifecycle. Also, you will not find the same risks appearing in the following projects.
Risks Actualized: Teams sit together and figure out the obvious risks that can affect project progress. However, not all of them become a reality. The actual risks should not be higher than the estimated ones. Sit with the risk manager to discover solutions for risk reduction.
Risks Unidentified and Unsuspected: You cannot identify every risk beforehand even when you have an effective risk management process in place. However, a competent manager must use previous project management experiences to solve unforeseen risks.
Risk Frequency: If the same risks are recurring at almost every stage of the project lifecycle, prioritize their solutions. The right risk management process will prevent similar risks from repeating for every project.
Risk Severity: Teams map risk severity beforehand and compare the results when the risks are actualized. If you assessed it correctly, you would have created a risk mitigation model for damage control. If not, you have an ineffectual risk plan.
Risk Costs: Every risk bears a cost, so your solutions should help manage the risk costs as well. You will experience a drop in the risk expenditure when you have an effective risk management process.
Solution Efficacy: The better equipped you are with solutions, the more effective is your risk plan. Proactive and continual updates keep your risk model ready to face all types of risks at every stage of the project.
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