Project management and risk management share a couple of similarities. In project management, the focus is directed at initiating a new plan while enterprise risk management involves taking care of a prevailing threat. The two are correspondent, and they both require agility to achieve desired outcomes.
How is Project Management Implemented?
Project management is implemented by integrating various tasks and procedures to ensure an idea is transformed into a fully-fledged project. These tasks are performed in stages or phases, starting with the initiation stage, scheduling, information dispensation, monitoring, and control to project completion.
How Proficient Should A Project Manager Be?
The project manager handles the execution of the strategies of the project. Therefore, they have to be competent in organizational skills with a proper understanding of the underlying threats and how to mitigate risks.
What Is The Importance Of A Project Team?
A project, whether small or large, is procedural and requires coordination to carry out the tasks that will safeguard its success. While smaller projects may require minimal coordination, there still must be a team to integrate their requirements. For larger projects, it is imperative that a team is in place to implement the project’s objectives, metrics, and deadlines in order to corroborate its progress and stability.
The project manager requires a team to handle assigned tasks. These individuals will take charge of the smaller tasks and report to the project manager for progress reviews.
What Risk Mitigation Means In Project Management
Project managers mitigate risks by taking steps that will reduce any adverse effects on the project. This involves identifying the risks, analysing for any potential impacts, prioritizing them according to their threat, alleviating them and constant monitoring.
How Project Managers Identify Risks
In project management, risk identification is the ability to determine the risks that could potentially hinder the project from realizing its objectives.
- Positive risks may be possible opportunities for the project if adequately planned. For example, if the project is completed ahead of schedule, additional sales can be realized.
- Negative risks can cause potential threats or adverse outcomes of the project. If a project has too many glitches, the project development may delay and lag behind the completion schedule.
How Do Project Managers Initiate Appropriate Risk Response?
The four possible ways project managers implement their response strategies to risk include avoiding, transferring, mitigating and accepting.
- Avoiding the risk means protecting the project from the impacts of the risk. In most cases, project managers fail to avert imminent risks.
- When they find it impossible to avoid the risk, the project managers opt to transfer the risk. They may use insurance policies to transfer any costs from accidents to the insurer instead of incurring the cost themselves.
- At times project manager will assess the risk probability and impact and find a way or strategy to reduce the potential outcome. If there’s a tight deadline, they may decide to move forward the deployment of the marketing strategy.
- Sometimes project managers will acknowledge the existence of a risk and accept it. When risk acceptance is passive, the consequences can be confronted after the risk occurs. If it is active, contingency plans will be put in place (budget, time) when the risk occurs.
How Does The Lifecycle Of A Project Translate to Compliance?
The lifecycle of every project needs agile development. Agile entails implementing the values and principles of project development. The 12 core concepts of agile in project management include customer satisfaction, making changes, delivery of working software, efficient communication, motivation, meetings, measuring progress, promoting sustainable development, attention to technical excellence, simplicity, self-organized teams, and inspection and adaptation.
Compliance requires agile processes with the necessary tools to meet the project goals. Agile entails constant reviewing of metrics of the project to ensure that risk mitigation strategies mesh with the production targets. For effective compliance, the strategies for risk mitigation should protect against imminent adverse risks. When compliance corresponds to the project, streamlining the process becomes easy.
How Automation Can Lead To Agile Compliance
If companies liken compliance to a software product project, they can devise ways of integrating Agile’s efficiency strategies to enhance their compliance bearing.
- Customer satisfaction is a compliance requirement for every vendor. They must continually monitor their risks to ensure their customers’ trust is intact. Companies can use this SaaS program to meet the reporting requirements of SOC 2 and SOC 3 for better results on the audit.
- The information security space is continuously evolving, and hackers search for smarter ways of exploiting the gaps. Companies are now put on the spot to keep reviewing their risks to gain a competitive advantage. The program risk dashboard and heat maps have great insights on compliance risk landscape.
- Motivating stakeholders support compliance projects by offering communication tools. But compliance managers must discuss project metrics to every department. Using this platform will enhance communication and efficiency in compliance management.
- Audits and self-assessments with metrics can be sustainable because they allow compliance managers and departments to reflect on the efficacy of their controls. This program helps them to compare their controls on various standards, frameworks, and regulations to determine whether the company is at risk from their compliance decisions.
While organizations offer tools for agile development, compliance managers still have to rely on shared worksheets and drives. As vendors and customers cling on compliance for their peace of mind, compliance managers still need tools to manage their roles efficiently.