Managing Risks During Project Execution

1. Introduction

Risk management is a crucial process in project execution. During the planning phase, risks are identified, analyzed qualitatively and quantitatively, and ranked. Responses to potential risks are also planned. Now, in the execution phase, risks may occur, and appropriate responses must be implemented.

2. Understanding Risk Management in Execution

A. Execution of Risk Responses

• Risks occur during the execution phase when actual work is being performed.
• Example: If a construction project is delayed due to bad weather, the planned response might be to extend work hours after the storm.

B. Monitoring Identified Risks

• Regular monitoring ensures that potential risks are identified in real-time.
• If a planned risk occurs, it must be addressed as per the Risk Register.
• Example: If a software bug delays testing, extra resources may be allocated to meet deadlines.

C. Converting Risks into Issues

• When a negative risk materializes, it becomes an issue and is recorded in the Issue Log.
• The corresponding risk response is executed to minimize project impact.

D. Positive vs. Negative Risks

• Negative Risks: Threats that can delay or derail the project.
• Positive Risks: Opportunities that may enhance project outcomes.
• Example: If new technology speeds up development, the project may finish ahead of schedule (a positive risk).

3. Key Elements in Risk Management During Execution

Element	Description	Example
Risk Identification	Recognizing potential risks before they happen	Weather delays in construction
Risk Register	List of identified risks and response plans	Plan for handling server crashes
Issue Log	Records risks that have materialized into issues	Software bug delaying deployment
Risk Response Execution	Implementing planned responses when risks occur	Hiring extra developers to meet deadlines
Monitoring Risks	Constantly observing project execution to detect risks	Tracking cybersecurity threats

4. Steps to Implement Risk Responses

• Step 1: Monitor ongoing work for potential risks.
• Step 2: Identify whether a risk is materializing.
• Step 3: Log the risk as an issue if it occurs.
• Step 4: Refer to the Risk Register for the planned response.
• Step 5: Execute the risk response to minimize the impact.

5. Example Scenario

Consider a software development project where a risk of system failure was identified during planning. If, during execution, the system actually fails:

• The failure is logged as an issue.
• The planned response (e.g., switching to a backup server) is executed.
• Extra developers may be assigned to fix critical bugs.

6. Summary

• Risk management continues during project execution.
• Planned risk responses must be implemented if risks occur.
• Negative risks turn into issues and must be recorded in the Issue Log.
• Monitoring project execution helps detect risks early.
• Effective risk response ensures minimal project disruption and may even create new opportunities.

By staying proactive, project managers can minimize threats and leverage opportunities, ensuring smooth project execution.