TOP PROJECT RISKS AND HOW TO REDUCE THEM

Publish date:

• 16th August, 2021

A project is fraught with many risks that can derail or even put stop to it. In this blog, we list these risks and certain simple steps that can ensure that their impact is minimal. Know more about them below.

The top projects risks are:

Scope - Scope risk basically refers to assignments that may impede project objectives, deliverables, or timelines. This is among the most common risks faced by business people. However, luckily there are different ways to overcome these risks. Laying out fixed objectives and task dates for each phase of the project as well as each team member involved. This way they don't take up additional work or waste time at any given time of the project.

Finances - This risk is very dangerous as it has serious implications for the company. A project must stick to the assigned budget in order to be successful. To prevent overshooting the budget, get the employees to stagger their work by shifting less important assignments to spaced out weeks, months, or years to accommodate your businesses project focus. Plus, the project manager must keep evaluating the expenses on a daily basis to see that it remains within the assigned budget and does not go into red.

Time - It's very important to ensure that the project competes each phase in the time allocated. This way the project can be completed fast, with lots of time to spare and deal with any unforeseen eventualities that can rear their ugly head at any given time.

Technology - Technology with its quirks & glitches can cause delays and frustrations. Hence it is very important to factor in down time and implementation delays into the project so that if they do happen, you are not looking at your timelines being thrown to the wind or escalation in the costs. For companies with good budgets, hiring a specialised company to do the same is advisable. This ensures that the professionals deal with these issues while the core team takes care of their main tasks etc.

Resources - Each project has a certain allocation of resources by the management. It's essential that the management considers all the pros and cons and allocates the necessary resources (and a bit more)  to ensure that the work can be done in a smooth manner.

Communication - In a rush to get the project phases completed , there can be communication gaps / lacunas. This can severely hamper the project from being as 'smooth as silk'. It's important to have all regular meetings of all involved as well provide confidence to the team members to communicate freely & openly on any aspect of the project they encounter etc. Free and frank communication is important to ensure all is well in the project.

Purchases - At time your project may involve taking services or good or both from other companies. To ensure that the company can deliver on time etc, do background checks or get referrals before signing on the dotted line with a vendor.

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About the Author

Arun Sharma

Arun Sharma, the Chief Operating Officer (COO), focuses on business expansion, product development, and strategic growth. His skills include project and account management, where he improves operations and boosts efficiency. With a growth-driven approach, he leads innovation and ensures projects are completed successfully. His strategic insights have been key to achieving steady results and building long-term client relationships.