Risk control is working the risk management plan while, at the same time, ensuring the plan is still valid. The project team must continuously make sure that assumptions are still valid.
They must also review the risks and probabilities for accuracy. The project manager must also review the original project plan to find out if is has been altered. At this point, he/ she will be tracking the project status or progress, analyzing the data and implementing decision made by the experts on the project team or the executive staff of the organization.
Risk monitoring control is performed at the concept phase of the project and ends at the close-our phase. It should be included in the regular communication process of the project.
In particular, risk control is also performed prior and the during the risk event. It is performed whenever there are changes to the project scope and on a regularly scheduled basis.
Tools Available for Risk Control
Risk Metrics are appropriate metrics that will aid in monitoring risks on the project. These include risk events, probability, value and impact. Timeframe, type, priority and status are also part of this list.
Monitoring and control tools include:
- Work Breakdown Structure;
- Project budget both estimates and actuals;
- Project schedule;
- Earned value of project activities whether it be actual point-in-time or forecasting;
- Project resource list and plan; and
- Change control log and forms.
Risk triggers are actions, events or circumstances that, if ignored, will cause the occurrence of a risk event. The project manager needs to identify potential triggers that would indicate that a risk event will occur and to ensure that these triggers are visible to the project team. He/ she will need to monitor these triggers frequently.
Earned Value for Risk Analysis
Earned value provides several analytical opportunities. This analysis can be based on work packages or activities or on the entire project. It can be done in two (2) ways: point in time measurement or forecasting.
Point in time measurement involves analysis performed up to the actual (present) time period. The variance analysis is can be carried out within 'panic parameters' (i.e. the notification of a possible problem) or outside of those same panic parameters.'
Forecasting involves analysis of what happens if corrective action is not taken immediately.
Incorporating Risk Reviews into the Management Plan
The project manager must establish a window of time to monitor the project. He should also review the schedule, budget and change control log for potential risks. The risk plan is reviewed after each occurrence of the risk and the probability and impact of each risk even is reassessed. It is important that risk management be part of the project's status meetings.
The project manager and some of the project team should capture and document facts as soon as possible. An analysis of the risk event should be prepared, as well as a lessons learned file. Always communicate results to the project team and the rest of the organization.
Results of Risk Control
- The project status is known;
- Corrective action has been taken;
- The risk management plan has been updated;
- The budget (including contingency and reserve) has been updated;
- The schedule has been updated; and
- Lessons learned on the project with respect to the particular risk(s) have need prepared and disseminated.
Remember, the project manager must establish a risk monitoring and control system as soon as possible in the planning process. Identify the key project metrics in order to monitor risks. Include the risk triggers for high priority risk events in the schedule. Include risk management status reports as part of regular project meetings and schedule time for risk reviews.
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