What does the speaker, Cornelius Fichtner, PMP, suggest about the causes of project failures as they relate to issues of risk management?
Cornelius Fichtner, PMP, places a strong emphasis on understanding risk attitudes and their impact on project management rather than delving into explicit discussions about the specific causes of project failures tied to risk management.
Common causes of project failures related to risk management encompass various factors, including:
- Inadequate risk identification at the project's initiation
- Insufficient evaluation of the likelihood and consequences of identified risks
- Lack of contingency plans for high-potential risks
- Ineffective communication about risks and mitigation strategies
- Ignoring early warning signs
Additionally, overlooking external factors like market shifts or regulatory changes, along with inadequate stakeholder engagement in risk discussions, can lead to unforeseen risks. Failure to monitor and control identified risks and a sense of complacency in assuming smooth progress without adequate preparation can also contribute to project failure.
Robust risk management entails:
- Proactive identification
- Thorough assessment
- Response planning
- Continuous monitoring and control
This ensures that potential issues are promptly and effectively addressed to prevent them from evolving into critical project challenges.
Cornelius Fichtner believes it's crucial to focus on understanding how people feel about risks and how it affects managing projects. Instead of just talking about why projects fail due to risk, he emphasizes this.
Common causes of project failures related to risk management encompass various factors, including:
- Not spotting risks early on when the project starts.
- Not properly figuring out how likely a risk is and what could happen if it happens.
- Not having backup plans for risks that could cause big problems.
- Not communicating well about risks and how to deal with them.
- Ignoring signs that something might go wrong.
Also, not paying attention to things outside the project, like changes in the market or rules, and not including the right people in discussions about risks, can lead to unexpected problems. If risks that are known aren't watched and controlled, and if people assume everything will go smoothly without getting ready for problems, it can also lead to project failure.
Good risk management means:
- Actively looking for risks.
- Examining risks thoroughly.
- Making plans for how to deal with risks.
- Keeping an eye on risks and making adjustments as needed.
This makes sure that any potential problems are dealt with quickly and effectively to stop them from becoming big issues for the project.