Navigating Project Decisions: The Role of Risk Monitoring
The Monitor Risks process is a crucial part of project risk management. It involves tracking the implementation of risk response plans, monitoring identified risks, identifying and analyzing new risks, and evaluating the effectiveness of the risk management process throughout the project.
The primary benefit of the Monitor Risks process is that it allows project decisions to be made based on up-to-date information about the overall project risk exposure and individual project risks. This ensures that the project team and key stakeholders are continuously informed about the current level of risk exposure, enabling them to make informed decisions.
The Monitor Risks process uses performance information generated during project execution to assess various aspects of risk management. This includes checking the effectiveness of implemented risk responses, determining if the level of overall project risk has changed, checking if the status of identified individual project risks has changed, identifying if new individual project risks have arisen, assessing if the risk management approach is still appropriate, verifying if project assumptions are still valid, ensuring that risk management policies and procedures are being followed, determining if contingency reserves for cost or schedule require modification, and checking if the project strategy is still valid.
The Monitor Risks process is carried out throughout the duration of the project. It is a continuous process that requires regular updates and adjustments based on the project's progress and changes in the project environment. By effectively monitoring risks, project teams can better manage uncertainty and improve project outcomes.