Effective Risk Management

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  1. What’s the most efficient way to assess project risk?

    Every project has risks, but every practice will be affected by the same risks in slightly different ways. Some firms can manage risks that other firms can’t.

    The DesignRisk app (https://buildingtech.com/designrisk/) is the easiest, fastest way to conduct a risk assessment and make the go – no-go decision. Check it out today.

    Smart design managers understand that being creative about managing risk can give the practice a hard-to-beat marketing edge. If you aren’t sure what that means, attend the PM Essentials program; you’ll learn how to use risk to your advantage.

  2. In your experience, what are the things clients want most?

    The great majority of clients, in our experience, want 5 things in commissioning a project:

    1. Functional outcomes; results “fit for purpose”
    2. Quality, particularly in terms of low maintenance, minimal “aging”, and retention of value
    3. Timeliness of delivery, at all milestones
    4. Lowest capital cost to achieve the above three
    5. No risk; certainty of performance of the above four

    The first three of these are completely within your control. So is the 4th, provided that you get sound cost advice on your design as you progress the solution, and provided you allow a buffer on cost. Never design to 100% of the client’s budget – on “greenfield” sites, design for 95% of the client’s budget. On adaptive reuse and any site likely to harbour latent conditions, design for 85% of the budget. There are other powerful strategies you can use as well; we’ll show you how to deploy them.

    If you can deliver on the first 4 of those, you can have a reasonable negotiation with the client on how to best manage those risks that are always present. PSMJ’s programs show you how.

Of all the errors design professionals can make, avoiding risk at all costs is probably the most damaging to a practice. Not all 4-letter words are bad! Exactly because so many competitors try to shield their firms from ALL risk creates an extraordinary competitive opportunity for those few firms that learn how to use risk to their advantage.

PSMJ’s deep experience and research in practice risk helps its clients to turn what appears to be a liability into a competitive advantage – and, paradoxically – actually lowering real risk by “buying into” manageable risk.

Risk shadows your every step whether you think about it or not. Anyone can sue you any time for anything. Ignore practice risk at your peril. Defending your practice takes time, money and raises your insurance premiums.

The better alternative: Keep an eye on risk. Walk toward it, embrace it, and create the low-risk practice that will give you the competitive advantage you need. Don’t give clients reasons to sue you.

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From Senior Manager to Principal: 20 November 2020 - Sydney
Project Management Essentials: All programs postponed due to Covid 19
Can't make it to our public workshops... We offer In-house programs too.