For many organizations, proper project implementation is all about planning, designing, coding, and delivering. If they can deliver a great product in the end, they need not have to think of anything else, right?
Every project will have risks in some form associated with it. And these risks can lead to disastrous consequences for the product developers and the product users. This is why, before any project development kicks off, organizations should perform adequate risk assessment.
Risk assessment is about analyzing various factors that may affect the project development process, or come into effect after project completion. Imagine a scenario without risk assessment. The developers successfully developed an application without hassle and handed it over to the client. The client, while using the application, fails to notice a risk that the developers had missed as there was no risk assessment involved. The risk ended up costing the client a lot, who subsequently sued the developers for the damage. This is just one potential scenario where one risk leads to big problems.
The bottomline is that risk assessment is vital. There should be a risk management team involved in a project right from its beginning till the end. Experienced project managers can come up with optimized plans that minimize or completely elude risks even after project deployment.
Here are a few lesser-known benefits of an enterprise approach to risk management.
Understand the project better
If the risk management plan dovetails perfectly with all existing project management processes, it will be easier for all teams involved to understand the project and its performance potential. This also contributes to peer reviews and audits.
Fewer unwelcome surprises
Project leaders typically don’t like surprises, especially the more unwelcome ones. A good approach to risk management would ensure effective communication and collaboration between the teams involved. This means the team would also be communicating about project challenges and discrepancies. This awareness of potential problems allow everyone concerned to intervene early before the threat becomes too severe. Managing risks before they materialize into serious threats makes for fewer opportunities for the team to show off their damage control skills, but facilitates a more efficient and cost-effective development journey for the organization.
Better data for better decision-making
The risk management team would be promptly collecting relevant data for analysis so as to uncover potential risks and consequences. The filtered data can be accessed by project leaders. Abundance of better data means the project managers can make better or more informed decisions.
Estimate contingency budgets more accurately
Many development companies simply guess to estimate the contingency budget for a project. With risk management practices implemented, it’d be easier to estimate contingency budgets without having to rely on guess estimates by the team.
Incorporating risk management approach with schedule and budget planning would help the project leaders determine what they should be budgeting in terms of extra resource, time, and money. Essentially, the team will be spending on things that actually matter.
These are but a few benefits of practicing proper risk assessment and management policies. Every flaw unnoticed or overlooked – be it minor or major, can lead to scenarios that could overwhelm the development team and end up causing problems for the client as well. At AOT, we never leave things to luck and guesswork. Our analysts work with our risk management & mitigation team to ensure that every product we create are risk-free before and after implementation.
Feel free to contact us to know more about AOT’s business practices and service expertise.