Techniques for Effective Risk Management in Consulting

Risk Management Made Simple: A Straightforward Approach for Every Project Manager Risk management is crucial to project success, yet it's often seen as complex and intimidating. Here’s a simple approach to managing risks in your projects: 1/ Identify Risks Early: → Start with a risk brainstorm: technical, operational, financial, and external risks. → Collaborate with your team to identify potential threats and opportunities. → Involve diverse team members to gain different perspectives on possible risks. → Use historical data and past project experiences to spot risks that may arise again. 2/ Assess and Prioritize: → Use a risk matrix to assess impact and likelihood. → Prioritize high-impact risks that could derail your project’s success. → Make sure you reassess risks periodically to capture any changes in impact or probability. → Don’t forget to consider opportunities as well—these should be prioritized, too! 3/ Develop Mitigation Plans: → For each priority risk, develop a strategy to minimize or avoid it. → Plan for contingencies to stay prepared for the unexpected. → Ensure the mitigation plans are realistic and actionable. → Set up early-warning systems so you can act quickly if needed. 4/ Assign Ownership: → Assign a team member to own each risk, ensuring accountability. → Ensure they track progress and adjust strategies as necessary. → Empower the risk owner with resources and authority to implement mitigation plans. → Ensure a straightforward escalation process if the risk owner needs help. 5/ Monitor and Update Regularly: → Schedule regular risk reviews and status updates. → Keep an eye on emerging risks and adjust plans as your project evolves. → Maintain an open feedback loop with stakeholders on the evolving risk landscape. → Use project management tools to automate risk tracking and reminders. 6/ Communicate Effectively: → Keep stakeholders informed about risk status and changes. → Be transparent about potential impacts and solutions. → Ensure communication is clear and consistent across all levels of the team. → Adjust your communication style based on your stakeholders' needs and preferences. Managing risk doesn’t have to be complicated. Focus on 𝗶𝗱𝗲𝗻𝘁𝗶𝗳𝘆𝗶𝗻𝗴, 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝘇𝗶𝗻𝗴, and 𝗮𝗰𝘁𝗶𝗻𝗴 𝗲𝗮𝗿𝗹𝘆; you'll set your project up for success. What’s one risk management tip you live by? Let’s share some wisdom!

A client came to me this morning (not happy) and said that their MSP gave them a document to sign stating that the MSP is absolving themselves of all risk because she wouldn't approve the security operations solution they pitched... If your idea of “risk management” is having your client sign a document that says “you tried to sell them a tool or service, and they said no” … ->you're not managing risk. You’re managing your liability. And it shows. This is one of the fastest ways to create distrust, kill rapport, and get fired. It instantly turns the relationship adversarial. You’re no longer a partner or trusted advisor, and they see you as someone shifting blame just in case something goes wrong. That’s not leadership. That’s fear. Let me ask you something, How do you think it makes your client feel when you hand them a paper to sign that says, 'This one’s on you'?” You don’t need a signature to prove they own the risk. They already do. What they need is clarity, collaboration, and leadership. Here’s a better way: -Put the risk on a shared Risk Register. -Document the conversation in context, not as a threat, but as a roadmap. -Identify compensating controls you can implement. -Make the risk visible to decision-makers...NOT to blame, but to educate. -Revisit it periodically. Shrink it over time. That’s how you build trust. That’s how you protect the relationship. And that’s how you lead clients through risk & not around it. If you frame risk as a “you didn’t buy the thing, so you’re at fault” moment, you’re losing the negotiation before it even starts. But if you treat it like a shared challenge that you’ll solve together, you build a long-term partnership. One built on truth, not transactions. Stop asking for signatures. Start showing leadership. Your clients won’t forget it...and neither will your churn rate. #msp #ciso #riskmanagement #business

Risk management shouldn't just be a slide in your deck You need to use it or you'll lose it. While most projects mention risk management, Few projects actually USE it. It's pretty easy to build a risk register, check the box off on a kickoff deck, and move on. But it shouldn't just be for show. It should be a living, breathing tool. Because when risks turn to reality, you're gonna need it. Reactive teams scramble. Proactive teams execute. Here's how to make risk management actually work: ☝ Make risks part of every status update If the only time you talk about risks is at the start of the project, you're already behind. Bring up risks in weekly touchpoints. Track how they're evolving. Make mitigation part of normal discussions. ✌ Assign owners, not just awareness A risk with no owner is a problem waiting to explode. Every major risk should have a clear owner. They're responsible for monitoring it and executing mitigation strategies so it doesn't derail the project. 🤟 Plan responses before you need them "Hope for the best, plan for the worst" isn't a plan. If a critical vendor misses a deadline, do you have a backup? If a key stakeholder drops off, who steps in? Pre-planned responses mean fewer delays and fewer fire drills. Risk management isn't a one-time exercise. It's a project discipline. PMs who get ahead of risks don't just keep their projects on track. They build credibility, trust, and get bigger assignments. 🤙

Guess-and-check is not risk management. If your build fails at launch, it's already too late. Here’s how we eliminate risk, before it kills your project. 1\ Clearly define and rank risks you’ll be mitigating Each process has a combination of old challenges (EV has solved before) and new challenges (no one that we know of has solved it before). We take a look at the new challenges and decide which have a low enough risk that we can move forward with and which need more testing. Risk is typically determined by a combination of cycle time to complete action, physics required, cost, and constraints that the specific design choice would cause (limiting the ability for a later change if it doesn’t work). 2\ Detailed scope development of risk items Once we have established the high risk items we set up a plan to prototype that item or have a backup option if the first option doesn’t work. For example, a backup option might include extra tapped holes in a tabletop for a jack screw. 3\ Communicate clearly and promote understanding During any project, it’s critical that EVERYONE is on the same page about the risk items and our plans to mitigate risk and solve the problem for our customer. Have a plan and testing as part of the project managers action items list and don’t lose sight of it. 4\ Work with real data Don’t guess and check. And if you feel that there is a small chance it won’t work, assume that it won’t work until proven otherwise with real data. The stakes are high with these types of projects. Back up all actions with actual data points and verifiable information. 5\ Save Time, Save Money, and Build Lasting Customer Relationships Solving tough problems for affordable prices reliably builds long standing customer relationships. Big projects take a lot of resources and time. Allocating the right resources at the right time in your projects will save headaches and propel your business forward.