+244 222-748-237 | +244 930-819-685 project-analytics[@]ekton.us

Risk Management Planning

Executives play a pivotal role in making risk management work:

  • They have to understand that risk management is more than a required discipline. It is a profession.
  • They have to understand what risk management can do for their projects and what might happen or is already going on, without that formal risk management process.
  • They need to know what they should do to make risk management successful in their organization and the barriers to such success, which they have to overcome.
  • They will have to handle risk management externally, too, with artful and candid presentations to the customers and other stakeholders.
  • Finally, they have to introduce risk management to the organization in a way that is likely to succeed.

With the stage set, Ekton’s risk management planning has far-reaching benefits that fundamentally change how your management team will make decisions:

1     Spot Projects in Trouble

Our risk management practices let you see what part of the project needs attention. Merging perfectly with any existing Project Management Office processes you already have in place, good risk management will give you the context for understanding the performance of a project and contribute to any health checks, peer reviews or audits.

2     Drastically Reduce Surprises

Leaders typically do not like surprises. A robust approach to managing risk allows teams to better communicate about project challenges in a timely way. Our risk management practices let the team spot concerns far earlier.

Early awareness of potential problems means that the right people can intervene to mitigate a problem before it becomes too severe to do anything about it. It also avoids the ‘project manager as hero’ scenario, and lots of firefighting, which is an expensive and high-effort way to fix problems. Managing risks before they materialize makes for fewer sensational headlines but a smoother, more efficient, and cost-effective way of running your project.

3     Take Advantage of Quality Data for Your Decision Making

Your senior leaders will have access to quality and helpful data which enables them to make decisions grounded in the reality of projects.

Being able to access risk information in real time through our project management dashboard means that decisions are made based on the latest data, not a report that is already out of date before it reaches the Executive team.

4     Elevate Your Communication

Our risk management elevates the conversation. It creates a point of discussion between project teams and key senior stakeholders, prompting them to discuss the difficult topics and deal with potential causes of conflict. Suppliers are involved in the conversations too, as risk responses necessarily touch on their activities. Including them in risk management discussions creates positive working relationships with their key personnel. They will see that their success is tied to the success of the project and that there is a willingness to work as a team to do something about it.

The conversation will be framed in what is good for the construction project and the company, instead of either being too caught up in the details or affected by internal politics. An increase in dialogue and the content of that dialogue brings the team together as a working group.

5     Do no Longer Rely on Guesswork for Budgets

“What should the contingency budget for this construction project be? Let us guess, at 10%.”

Project risk management means that contingency budgets can be more accurately estimated and rely less on the professional guesstimates of the project team. By incorporating risk management into schedule planning and cost planning, you can create scenarios to inform better what you should be budgeting regarding extra time, resource, and money.

Overall this will lead to fewer cost and time overruns and better quality plans.

6     Set an Expectation for Success

Knowing that risk is being actively managed sets an expectation for project success. With the framework in place to deliver despite the known risks and open communication about the project’s challenges with senior managers, everyone begins work knowing that success is the expected outcome.

This changes the whole mindset of the team: knowing they are working on something destined to deliver great results for the company improves morale, supports productivity and engenders an environment where success is achieved.

7     Keep the Team Focused

With risks being actively tracked and managed, the project team can maintain a focus on the critical outcomes. Risk management supports this because it serves to highlight where project results may not be achieved, focusing the team on what to do about that concern to get the project back on track.

With risk management shedding light on the areas of challenge within a construction project, the team will move swiftly to deal with them, ensuring that actions are taken to mitigate the risk. This prevents problems from being overlooked in the business of the day-to-day work on a project – especially when those problems appear to be difficult to solve.

8     Make Escalations Clearer and Easier

When a project team cannot deal with a risk themselves, they need to escalate it to senior management for action. Clear risk management processes take the guesswork out of when this should happen. A defined process ensures that important risks are seen and assessed by the right people at the right time, enabling early action to solve a potential problem.

The management team is not receiving alerts about every risk, which makes it easier for them to focus on what is important and what requires their attention.