Benefits of Risk Matrix in Project Resource Management
As a project manager, while kicking off a new project, you have to define the project scope, timeline, resource scheduling, and other necessary attributes. However, suddenly, due to some sudden unplanned absenteeism of critical resources, you might end up in a scenario which leads to delayed delivery of projects with budget overshoot. Hence, risk matrix in Project Resource management is overly critical to be better equipped to have a backup strategy.
Risk matrix: It is a powerful visual representation that businesses use to identify, analyze, and segregate all potential risks in a project. It is a grid where the left side (X-axis) represents the probability of a specific risk, while the top (Y-axis) represents its impact. In a few cases, there is even a third axis to denote the “probability of consequence,” which depicts the likelihood of a consequence once a risk occurs. It enables you to assess the risks beforehand based on the severity of their impact on the project and have the best mitigation plan in your hand.
The advantages of a risk matrix in Project Resource management:
- Allows to prioritize risks based on the severity: An end-to-end view of all potential risks related to a project allows managers to thoroughly assess each of the risks and perform a comprehensive analysis. The analysis finally enables managers to find out the likelihood and impact of risks and results in prioritization of risks for a multiple-risk scenario. It then aids in categorizing them as high, medium, or low priority and determining the level of preparedness required to combat them.
- Devise risk management strategies proactively: When project managers have a risk matrix in place, they can bring everyone together, brainstorm, and find effective measures to manage them. It enables a project manager to have an effective contingency plan in place to future-proof an organization against potential risks.
- Ensures on-time delivery of projects: A visual representation of risks in the risk matrix provides a clear picture to project managers about the upcoming risks and their impact. Project managers always stay alert to eliminate any risks in advance by leveraging their contingency plan. This results in on-time delivery of projects without any bottlenecks.
- Standardization of the risk evaluation process throughout the organization: Risks vary from project to project, as does the risk matrix. However, it enables in defining standard criteria for the evaluation of risks involved in a project, thus leading to improved efficiency.
- Strict governance is required to keep the resource health index in check: Any risks associated with resources, such as reduced productivity and unplanned leave, are critical, and addressing them on time keeps the resource health index in check. Risk matrix in place enables project managers to track overutilized resources and helps prevent the burnout.
- Prevents potential scope creep: A risk matrix enables a project manager to determine the possible risks that could result in scope change. The project manager can then take appropriate proactive measures to mitigate risks, minimize scope change, and prevent it from turning into scope creep.
eResource Scheduler: Leading Resource management tool for risk mitigation
A Resource management software like eRs provides 360-degree visibility of all the resources allocated to various projects across the enterprise. Using the advanced filter, the project manager can identify the right resources based on skills and competencies and create an effective scheduling plan, preventing over or under utilization of resources. It generates real-time, real-time business insights aligned to risk matrix that helps managers to make data-driven, informed decisions on time. With the right resource plan in place, the resource-related risks can be minimized, thereby streamlining project execution.
Don’t you have your resource matrix yet? Hurry up and talk to our subject specialist at eRs for a personalized demo.
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