Project Risk Management: How to Keep Projects on Track
Every project has risks (and even issues… do you know the difference?); risk management in project management is the difference between a project that runs smoothly and one that falls apart. You might think, "Well, obviously", but how many teams actively manage risks before they become full-blown disasters?
Most projects start with optimism (“it’s fine… it won’t actually happen”… “we’ll deal with it later”…). Then reality hits:
❌ That key stakeholder suddenly changes their mind (again).
❌ The software update breaks something critical—right before launch.
❌ The supplier swears they'll deliver on time… but doesn’t.
❌ The building that was supposed to be built is… well they’ve completed the first floor. Of ten…
Sound familiar? That’s poor risk management in action.
🚧 What Is Risk Management (And Why Should You Care)?
Risk management is not about paranoia—it’s about preparedness. It’s knowing that things will go wrong and putting a plan in place before they do.
✅ It prevents minor hiccups from turning into project-killing disasters.
✅ It gives teams confidence because there’s a backup plan.
✅ It makes you look like a genius when you saw a problem coming before anyone else did.
You should be monitoring your Risks & Issues log and comparing it to the projects critical path. Regularly. So that you can handle them early. Learn this work “mitigation”, and start mitigating.
🔥 Why Do Projects Fail Without Risk Management?
1️⃣ You Only React When Things Go Wrong (i.e. the Too Late Strategy)
If the first time you think about a risk is when it’s happening… it’s too late.
🚨 The consequences: Teams scramble, deadlines get pushed, and stakeholders get frustrated.
✅ The fix: Actively manage your risks & issues
Identify risks before they become issues. Log them.
Identify and log issues.
Use a RAID log (Risks, Assumptions, Issues, Dependencies) to track them early.
2️⃣ You Assume Everything Will Go Right
Hope is not a strategy. If your plan doesn’t account for potential problems, even small setbacks will derail you.
🚨 The problem: No contingency for delays, missing resources, or unexpected challenges.
✅ The fix: Build in contingency time and budget for risks. Expect things to go wrong—and plan accordingly.
And read all the articles in this series, starting with What is Operations Management (and Why Should You Care?)
3️⃣ No One Takes Ownership of Risks
If everyone assumes “someone else” will deal with a risk, guess what? No one will.
(😉Pro Tip: do you remember this was the same problem we addressed with Task Ownership & Resource Management?)
🚨 The problem: Unclear accountability means risks get ignored until they explode.
✅ The fix: Assign risk owners who track and manage specific risks, ensuring they don’t get lost in the chaos.
4️⃣ You’re Not Tracking Risks Over Time
Risk management isn’t a one-and-done task—it’s an ongoing process.
🚨 The problem: Risks change, evolve, and sometimes disappear—but if you’re not checking, you won’t know.
✅ The fix: Regularly review and update your risk log. Hold weekly or bi-weekly risk reviews to keep your team proactive. When you’re reviewing your tasks, you should also be reviewing the RAID Log.
➡️ Use a methodology and stick to it to run your project.
➡️ Use good software to track the work… including your RAID.
🔑 How to Manage Project Risks Like a Pro
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If you don’t know what could go wrong, you can’t prepare for it.
✅ Hold a project kick-off risk session to brainstorm potential risks.
✅ Review risks from past projects—history repeats itself.
✅ Add those that are known before you start your project to your Project Initiation Document or whichever document you use to sign off your the work.
✅ Add every Risk and Issue as it comes up.
✅ Use good software to track the your RAID. -
Some risks will keep you up at night. Others? Not so much.
✅ Use a risk matrix (Likelihood vs. Impact) to focus on the big ones.
✅ High-impact, high-likelihood risks need action NOW. Low-impact risks? Keep an eye on them. -
No one likes a problem without a solution.
✅ Assign each risk an owner—someone responsible for tracking and mitigating it.
✅ Define clear action steps to reduce risk probability or impact. -
Risk management isn’t a set-it-and-forget-it process.
✅ Regularly review the RAID log (Risks, Assumptions, Issues, Dependencies).
✅ Hold risk check-ins during project meetings to stay ahead of potential problems. -
Because if you don’t learn from your mistakes, you’re doomed to repeat them.
✅ At project closeout, review which risks actually happened—and how well you handled them.
✅ Use this data to improve future risk planning (and maybe prevent that next major disaster).
🚀 The Bottom Line
Risk management isn’t about eliminating all risks (impossible). It’s about making sure that when things go wrong — and they will — your project stays on track instead of falling apart.
At OptimEdge, we help businesses get ahead of risks so that their projects don’t just survive—but thrive.
📢 Want to stop firefighting and start planning for risks the right way? Let’s chat.
📚 Want to Learn More?
Explore the rest of this blog series:
📖 Why Your Software Isn’t Solving Your Problems
→ Tools don’t fix broken processes. Here’s why your software isn’t the magic solution you expected.
📖 What is Operations Management (and Why Should You Care?)
→ Operations and project management go hand in hand—if you want smoother projects, you need strong operations.
📖 How to Get Your Team to Actually Use a PM Tool
→ Introducing a tool is easy; getting people to use it is the hard part. Here’s how to drive adoption.
📖 The Cost of Poor Resource Management (and How to Fix It)
→ Missed deadlines, burnout, and inefficiencies—all signs of poor resource management. Here’s how to get it right.
📖 Why Your Project Timelines Keep Slipping (and How to Fix It)
→ Unrealistic deadlines, hidden blockers, and wishful thinking—learn why projects fall behind and how to prevent it.
📖 What Is Scope Creep (and Why Is It So Dangerous)?
→ One "small tweak" at a time, your project doubles in size. Learn how to stay flexible without derailing everything.
🟢 Project Risk Management: How to Keep Projects on Track
→ Every project has risks—smart teams plan for them. Here’s how to identify, track, and mitigate risks before they derail success.