Monitoring the risks associated with your project is an ongoing continuous effort to reduce any negative impacts on the project. It is different from the risk response plan in that the monitoring occurs during the execution of the project rather than the planning stages (Shrivastava, 2012). Along with risk audits two monitoring tools and techniques would include; variance and trend analysis and reserve analysis.
Variance and trend analysis used “to compare the planned results to the actual results” (PMBOK, 2013). The analysis is conducted to determine “the cause and degree of difference between the baseline and actual performance and to maintain control over a project” (Ganguly, 2016). By understanding the variance you can determine if corrective or preventative action is required (Ganguly, 2016).
Reserve analysis is completed to “compare the amount of the contingency reserves remaining to the amount of risk remaining at any time in the project in order to determine if the remaining reserve is adequate” (PMBOK, 2013). This is important because you set aside a certain amount of money aside in the contingency reserve for each risk. If one of the risk ended up withdrawing more funds from the reserve than expected, you need to make sure you have enough remaining funds to cover the rest of the risks on your risk register.
The terms “workaround” and “contingency plans” are often used interchangeably when in fact they are different. A contingency plan is your “plan B”; after identifying the risks a contingency plan is what you are going to do if that risk occurs. Unlike contingencies, “workarounds are responses that were not initially planned, but are required to deal with emerging risks that were previously unidentified or accepted passively” (Usmani, 2018). Currently with the system my command uses, we tend to have many workarounds due to system issues that were not foreseen in system updates. We also use contingency plans in order to stay audit ready.
Through monitoring and tracking your project teams “temperature” you are gaining “insight into the health of the project and identifies any areas requiring additional attention” (PMBOK, 2013). Heldman explains that “if the work of the project starts drifting off track from the goals, you’re in danger of project risk” (Heldman, 2005). Earned value management (EVM) is one-way project managers can monitor performance within their project. EVM “measures project performance with an integrated schedule and budget, which is based on the project work breakdown structure (WBS)” (Ray, 2018). When your project team strays from the base line the margin for risk increases.
Ganguly, A. (2016, November 29). Variance Analysis . Retrieved from Project Managment.com : https://www.projectmanagement.com/wikis/345511/Var…
Heldman, K. (2005). Project Manager’s Spotlight on Risk Management . San Francisco, CA : John Wiley & Sons, Inc. .
PMBOK. (2013). A Guide to the Project Management Body of Knowledge 5th ed . Newtown Square, PA: Project Management Institute, INC .
Ray, S. (2018, July 18). Using Earned Value Management to Measure Project Performance . Retrieved from Project Manager : https://www.projectmanager.com/blog/using-earned-v…
Shrivastava, N. (2012). Project Risk Management – Another success – boosting tool in a PM’s Toolkit . Retrieved from Project Management Institute : https://www.pmi.org/learning/library/project-risk-…
Usmani, F. (2018, July 25). What is a Workaround? Retrieved from PM Study Circle: https://pmstudycircle.com/2015/03/workaround/
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