The Data-Driven Approach to Project Risk Management
In today’s turbulent business environment, risk and project management professionals face mounting challenges with project risks by investing in an optimized process without sufficient funds, personnel and data resources.
On a daily basis, organizations collect a tremendous amount of data regarding business processes and functions. However, the information collected is often not used to maximum effectiveness when making executive decisions. Additionally, it is challenging to design the optimal process and make the best organizational and business decisions.
The Microagility consulting team has analyzed hundreds of client engagements, internal projects and operations, as well as designed a data-driven risk management approach. This data-driven approach optimizes investments while improving project risk management performance.
Risk ranking, communication and unaligned functions are the main problems MicroAgility detected and built a framework around avoiding. This type of data-driven risk management helps in:
- Collecting better and more targeted data and information
- Developing a more accurate risk ranking system
- Establishing a stronger understanding of project risks
- Developing more relevant metrics, rather than using conventional metrics
- Implementing risk management strategies and assigning accountabilities
- Enhancing internal communications and responses to unknown risks
When implementing the data-driven risk management process, Microagility was able to align project management functions, select appropriate mitigation and risk management tools and strategies, and tackle the root causes of risks. Doing so resulted in efficient project risk management and better use of allocated resources.
MicroAgility has also developed success criteria and measures that led to a proven decrease in risk-acceptance and compromise incidents through dealing with critical risks promptly.