5 Ways to Handle Digital Risk Management

January 6, 2022by Robin
Digital Risk Management

It would be nice to work as a Project Manager without thinking about what digital risks could happen during a large digital transformation.

The good news is that if risk identification is included in the project planning process, it is possible to be prepared before a crisis occurs. Implementing a digital transformation without managing the associated risk will not allow an organization to maximize a true strategic transformation.

Real-world situations indicate that without risk management standards, the project manager may not be able to embrace emerging issues.

1.     Use a Methodology

When performing a digital transformation project managers to follow standard project management methods (e.g. PMBOK®PRINCE2 guidelines, or even flexible methods such as SCRUM and SAFe) to identify symptoms and risks that can lead to project failures.

Allow room for innovation to create unique solutions. Not all digital risks are equal or create the same issue for a company.

2.   Know the Processes and People

The study by PWC Global Risk Audit found the following:

PwC 2019 Risk in Review Study’ outlines that 76% of business leaders believe that the way their organisation is managing risks on its digital journey is either very effective (20%) or at least somewhat effective (56%). However, it is striking that 48% of the respondents are willing to take more risks than in the past as a result of their organisation’s digital roadmap. Only 9% make a clear statement that they would like to reduce risk in response. For the 48% of respondents, an appropriate method for managing their potentially new risk will be most important if they want to increase their risk exposure. PwC Switzerland

3.      Plan for Complexity

No effective method will quickly become a serious problem in dealing with a complex environment. It is important to continuously evaluate relevant organizational and technical factors.

Without prioritization, the complexity of a digital project will greatly increase and prevent project managers from managing important tasks such as communicating with the most important stakeholders.

Project results should have a clear target operating model that should include a range of technological solutions and a set of requirements with a clear business case and benefit analysis.

4.      Deal With Uncertainty

The duration of an activity, cost, scale, and quality of results, uncertainty is a given. Interdependent technologies change and will eventually have an adverse effect on the entire system.

Have measures in place to allow quick measured reactions to unplanned events. Add performance monitoring to ensure process control and implementation of risk identification to determine what can be continued, mitigated, and tracked.

5.      Human Behavior

The way project managers and participants interact and communicate, even if they are voluntary, directly affects the likelihood of success.

Communication and agreement on acceptable levels of risk should be designated. Strong leadership, clear communication, and relevant project experience improve an effective project team and internal motivation.

 

Many organizations are now moving to a number of solutions to ensure that project risks are managed. Be sure to take these into consideration.