Risk Management is achieved by anticipating and addressing potential project issues, thereby reducing the uncertainty of meeting project objectives. These objectives are normally expressed in terms of time, quality and/or cost. Careful planning and attention to detail are excellent first steps to successful Risk Management. For a more rigorous approach, an iterative risk management process has been developed. This includes five basic steps. These are:

During Risk Identification, the sources of risk, possible risk events, and internal and external influences on the project are ascertained.

Risk Analysis is the second step in which the initial probability of occurrence and impact of each possible event are estimated.

Risk Quantification is the step in which the probability of occurrence and impact for each risk event are refined and expressed in meaningful terms, such as dollars or days. The issue of a range of possible values is also addressed.

As the name suggests, Risk Response Planning consists of defining the ways in which a risk event will be dealt with if it occurs. In addition, the amount of money or time needed as a contingency to cope with this event is also calculated. It is also vital to determine what steps can be taken to mitigate the impact and/or likelihood of occurrence of any particular risk event.

Risk Response Control consists of determining how, during the project lifecycle, the Risk Management Plan will be put into action and how new risks will be dealt with.

These are sizable and important tasks, and Bluewater's extensive history in project management can both simplify and ensure success to this process.

In recent years, Bluewater has played a significant role in teaching Project Risk Management to the project management staff at Lucent Technologies, The Weyerhaeuser Company and The Boeing Company.

For information on some of the ways in which Bluewater has supported their clients, see our client portfolios.

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