Four steps for reducing project risk

Risks in a project are inevitable. However, carefully collecting, evaluating, prioritizing, and controlling risks can increase the chances of success for your next project.

Whether it’s small or large, complex or simple, every project has risk. It’s our job as managers to do our best to not only minimize the risk in our projects but to minimize it as soon as we can. In this article, you’ll learn a simple four-step approach for doing just that.


The first step to managing the risk of a project is to inventory the situation. That is, identify all of the risks that you think are possible in the project. The inventory should include all internal factors for the project such as resource changes, assumption failures, and sponsor availability. It should also include all external factors such as a change in company direction or a change of technology direction. Most of all, however, it should include the things that are new in the project. If the project is working with a new technology, is using a new development methodology, or even if there are new, relatively unknown team members, these need to be listed as potential risks to the project.