Tips

#1: Forget about using Monte Carlo simulations (for now)

Now I’m not saying that Monte Carlo simulations don’t work, just that all too often the plans that the simulations use are incomplete, incorrect or have poor estimates.

The Monte Carlo technique uses project plan data to calculate the most likely end date. Since most plans are full of holes this doesn’t do anything other than turn bad data into more bad data.  Remember: garbage in, garbage out.

Instead, start building up your risk management skills by identifying potential risks and then quantifying them.  This will give you a much better feel for why your project might go wrong.  You can use the results to improve your project plans by including specific risk management activities.  Over time you’ll create better plans.

Once you get better at creating plans that are comprehensive and accurate, then you can start using Monte Carlo tools.

#2. List everything you’re responsible for delivering

Start with a comprehensive list of all your project has to deliver. Each item is a source of potential risks.

#3. Get your whole team involved in assessing risks

Having the whole team involved makes the task of risk assessment much easier, gives you a much broader range of views and makes the whole team aware of the risks you need to manage.

#4. Use a top ten risk log

By now you’ll have a huge list of risks.  Just focus on the ten most likely to cause damage. Fix these first, then move on to the next ten.  That way you eliminate the biggest threats to your project first.

#5. Take at least one action every day to reduce risks

The reason most projects fail is that they identify risks but don’t deal with them.  Sounds crazy, but it’s true.  So do something every single day to reduce your risks, starting with your top ten.

#6. Update your top ten risk log every single week

Once you start taking regular action you’ll see the level of risk falling.  Updating your risk log helps to keep you motivated to take further steps.

#7. Send your top ten risk log to your key stakeholders regularly

Your project will only succeed when you have support from across your organisation.  Show your stakeholders that you’re reducing the risk of failure and they’ll become believers in your project and powerful supporters.

#8. Look out for opportunities

Once you get better at managing risks you’ll find yourself seeing investment opportunities where you used to see only problems.  Seize them!

#9. Pass on what you know

Let your colleagues know what actions you’ve taken to eliminate risks from your project.  It may help them to deliver their projects on time too!

#10. Learn from the mistakes of others

Save yourself time and effort.  Before you start your next project review the risk logs from other similar projects.