Risk Reviews
Projects are fundamental in facilitating comprehensive innovations within business organizations and the adoption of feasible solutions for dissimilar operations. Firms routinely handle distinct risks that can hinder the project's efficacy and success. In order to prevent unexpected issues, it becomes essential to mitigate risks and implement practices and controls that guarantee the project's prosperity. Thus, project risk reviews have become fundamental in protecting project quality value, budget, and schedule. This paper seeks to answer critical questions regarding project risk reviews and their implications for long-term projects. Specifically, it elucidates the frequency of project risk reviews and the risks of not doing them often enough and discusses what team members should do when risks materialize before schedule risk review meetings.
Project teams can conduct risk reviews on a bi-weekly basis for a multi-oriented project. The risk revues ascertain whether the project team identify and analyze the risks affecting the project's schedule, cost, and performance within the last two weeks, the new risks identified, and procedures taken to mitigate the risks. As projects become increasingly complex and challenging, risk reviews have become critical to help project teams innovate feasible solutions in order to limit the implications of project uncertainties. In this vein, Adler and Chen (2011) argue that more sophisticated and complicated projects would cost high levels of investment. Therefore, the project risk reviews become critical to assert whether the project team is competent and capable in conducting the operations and executing their assigned responsibilities. Project risk reviews can inform future-curving processes within the firm to mitigate the execution of high-staked projects. For instance, risk reviews can ensure that risks that impacted similar projects several times are well understood and documented. In order to avoid project failure, some risks and issues need to be addressed right immediately, and the project team should ascertain whether such risks were reported and tackled within the last two weeks, and if not, they should establish why and deal with the problem.
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There are several risks of not executing the project risk reviews often enough. First, the project team may not have developed a sustainable risk assessment and mitigation plan with comprehensive criteria and regular schedule as the project advances. In this context, the project’s potential vulnerabilities and hazards can significantly increase, threatening the positive outcome of the project. This may result in the firm developing possible strategies for future projects yet, unable to achieve effective control of the current project (Chuchalewska & Crump, 2022). Second, having insufficient project risk reviews may result in a lack of regular resources and capability assessment to guarantee consistent project success. Also, when the project team underrates the impact of unknown risks, it can result in practical issues that can delay the project's completion time, thus increasingly incurring resource costs, which ultimately threatens the firm’s profitability and sustainability (Kerzner, 2018). When the reviews are poorly scheduled or executed, the project can fail or paper losses in profits, which increase reputation failure for the firm (Chuchalewska & Crump, 2022).
In the context of risk discovery before the project risk review meetings, it is critical not to wait until the next schedule meeting but immediately communicate the risk to the project manager and team members. The project manager will ensure that the risk is recorded and evaluated as a matter of the utmost urgency. Risk management plays a vital role in guaranteeing client satisfaction by augmenting the likelihood that the project effectively meets the predetermined objective. Risks should be immediately communicated and evaluated for managers to develop feasible plans to deal with them. Communication is critical to build trust within team members and ensure that each member understands their responsibilities or duties towards the project. When risks are immediately communicated, the project manager can influence other project team members to comprehend the risk and establish if mitigation measures to deal with it can be actualized and their effectiveness (Blaskowski et al., 2022). Depending on the materiality and potential impact of the risk to the project, the project manager might schedule an emergency risk management meeting to assess and address the risk or incorporate it in the next exposure session meeting.
In conclusion, risk reviews are vital to ascertain whether the project team can identify and evaluate the risks that affec
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