Applying the Golden Rule to Proactively Manage Project Risks
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#Project management #Risk Management 2 mins read

The golden rule when a project risks

Every project, from small to large, involves risks. Negative computer risks when occurring will cause losses, affecting the goals that the project needs to achieve. But don’t worry about risks because grandparents have a saying “in misfortune there is luck”, here are The golden rules you should keep in mind when facing risks in project management.
 Applying the Golden Rule to Proactively Manage Project Risks

Photo by Nick Morrison in Unsplash


1. Calmly learn about the risks faced by the project – The golden rule 


The golden rule: When risk strikes, you may experience a concussion trying to figure out what happened. So, before jumping into action or making any decisions, take some time to gather your thoughts and look at the situation objectively. Let’s assess that risk to see how much it is. Sincere advice is to take a deep breath!


In addition, you should not only focus on threats and possible risks but ignore opportunities that bring unexpected value to your business or customers/partners. And do not plan alone, but ask for the input of all project members about the potential risks and opportunities they think about because maybe they have breakthrough ideas that you omitted.


2. Specific statistics on the risks encountered – The golden rule


The golden rule: It is sincere advice that instead of spending time aggregating risks or causes of risk in traditional ways, we can use tools to summarize risks as well as convenient for members. For example UpDiagram’s Risk Management templates. Propose ideas to deal with that risk. Such statistics will help everyone understand the problem at hand and have a clear plan to deal with the unexpected risk.


3. Handle risks in the most scientific way 


The golden rule: Let’s take a close look and decide what we’re going to do with each risk to best manage them. There are five basic strategies:


  • Avoid it: you can completely ignore a risk if it doesn’t affect the whole project too much.
  • Minimize it: This is a way to make a bad outcome less likely to happen or minimize the project’s impact when it happens.
  • Thorough handling: When those risks deeply impact the project, the best way is to face and solve them, but each with the principle of “slowly but surely”.
  • Transfer it: “Share” the risk with another party, for example, buy insurance to be able to receive protection from the insurer.
  • Accept it: For low-impact and low-potential risks, find a simple, low-cost solution, and if you don’t find the right solution, accept the risk and move on. work as usual.


The Golden Rule for Addressing Risks

Photo by John Schnobrich on Unsplash


Each strategy has its advantages and disadvantages, and you will probably use all four of these strategies. Sometimes it may be necessary to avoid the risk and other times you will want to minimize the risk or either completely dispose of it, transfer it or simply accept it. Let’s see what those terms mean and how to choose the right one to use for each of your business risks.


Controlling and protecting the project from risks is always what professional project managers want to aim for. But life and work cannot avoid negative problems, sometimes it will pull you down, but sometimes it is a springboard to go up. The risks in the project are the same, do not panic, but always remember to stay calm, make statistics, and plan to solve them scientifically.


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