So, what are project risk owners and how should project managers identify and assign them? Let's talk.

Imagine that you are the project manager of a two-year, multi-million dollar project. During the execution of your project, you take a beach vacation.

One of your team members calls upset that a major risk has occurred. You cooly reply, "No problem." You text the risk owner and discover that the risk response plan is being executed and everything is fine.

Is this scenario possible? One thing is for sure. If we don't identify and recruit risk owners, this will never happen. Your project will be at greater risk.

What is a Project Risk Owner?

The PMBOK 6th Edition says a risk owner is "the person responsible for monitoring the risks and for selecting and implementing an appropriate risk response strategy." Furthermore, these individuals may aid in evaluating their risks in performing qualitative risk analysis and the quantitative risk analysis. 

I often ask project managers the reasons for project failure. One of the top responses is a lack of leadership and sustained engagement by the project sponsor. The sponsor paints a fuzzy picture of what they want, throws it over the fence to the project manager, and goes on their merry way. He or she essentially says, "Let me know when you're done. Failure is not an option." Really?

Fortunately, some sponsors know how to hit home runs. These sponsors understand that their leadership is essential to a winning season. They stand out from other sponsors by owning their projects and maintaining a healthy relationship with their project managers from the beginning to end of their projects.

Sponsors are typically busy senior executives often coming from the C-suite. In addition to the projects they are sponsoring, the executives have many other responsibilities.

How is it possible for a sponsor to complete their project work and still have time to perform their other duties? Let's look at 10 ways sponsors can boost project success.

In this article, let's explore what you need for a great project charter.

John Maxwell says, “All great leaders possess two things: They know where they are going, and they are able to persuade others to follow.”

And, one of the most powerful tools for improving project communication is the project charter.

Think about it—in the project charter process, project sponsors and managers have the opportunity to engage key stakeholders for the express purpose of defining the vision of a project.

Without a project charter and clear communication, people are left to their own devices. And believe me, individuals, groups, and organizations will come up with their own versions of the project. United, project teams succeed; divided, they fall.

So, what do you need to create a great project charter?

1. An Engaged Project Sponsor

So, how do sponsors start projects? These leaders see a need or opportunity. For example, the head of the Accounting Department may see billing problems due to a dated bug-prone billing system. Furthermore, the sponsor creates and submits a project charter to the Project Board or similar group for approval.

So, what do you do when your sponsor is busy and you are having difficulty getting their attention? Elizabeth Harrin provides some great tips on What to Do When Your Sponsor is Too Busy.

2. Engaged Project Stakeholders

In addition, we need engaged stakeholders. Not everyone, mind you, but we do want the key stakeholders involved in the project charter process. Wise sponsors invite key stakeholders to the initial meetings to discuss the project charter and to obtain their input.

When sponsors choose to ignore stakeholders or purposely keep them out of the charter process, risk increases. These same stakeholders will discover the project later and may adversely influence the project. It's not like they have malicious intent. Rather, they understand aspects of the project that they sponsor was not aware of such as regulatory requirements or how the project may affect other operational activities. 

3. A Project Charter Template

Over time, organizations develop organizational assets such as project management templates. Ask your PMO or project management group if a project charter template is available.

The template provides structure and the common elements prescribed within an organization. Keep in mind, you may need to modify the template to some degree to fit your project. For example, you may add your project success criteria to a template that lacks this element.

What would you do if all hell breaks loose in a critical company project that you are managing? You lose two of your best team members. Your budget is shot. A key stakeholder is breathing down your neck. Behind schedule by four weeks. You haven't slept well in two weeks. And you feel like throwing in the towel.   

Taking on Risky Projects

Some projects are more risky than others. A project sponsor sees an opportunity. It's a stretch and he knows it, but he wants to try anyway. So, the project charter is completed and the top risks are recognized.

The Project Board approves the project. Why? Because there will be tremendous gains if the project is implemented successfully.

And guess what? You've been asked to manage this project. Lucky you.

As you are engaged in the project, you begin to understand just how challenging the project is going to be. How will you approach the uncertainty that lies before you? What can you do to recognize and plan for the events and conditions that may have negative effects on your project objectives?

When is risk exposure greatest in a project? In the beginning, in the middle, or at the end of the project? It's actually highest in the beginning. Let's look at how to reduce risk exposure early in your projects.

Why Risk Exposure Is Greatest in the Beginning

So, why is your risk exposure greatest in the beginning? Project managers have the least amount of information. Uncertainty is the greatest. We know very little about the:

• Goals of the project
• Deliverables
• Requirements
• Budget
• Constraints
• Success criteria
• Availability of resources

Here are five activities that you can undertake to reduce the risk exposure early.

Operational risk includes people risk, technology risk, external event risk, and process risk. In this article, let's talk about process risk and how to reduce these risks through process mapping.

When employees leave organizations, these entities may loose daily operational knowledge. You know. The people that know how to get things done are now gone. And these organizations often lack process documentation. Furthermore, they fail to cross train other employees adequately.

So, who is impacted? Employees for sure. But most importantly, the customer is adversely impacted. 

IF. Have you thought about the use of this two-letter conjunction in risk management lately? Let's look at how to use the power of If-Then risk statements.

IF is a simple word that can open up new doors to writing clear risk statements. And it can be used to write opportunities as well as threats.

If-Then Risk Statements

Write Opportunity Statements

Opportunities are events and conditions, that if they occur, have a positive impact on your project objectives (e.g., schedule, scope, budget, quality). Here are examples of how you might start these risk statements:

• If you purchase ten or more computers from the XYZ vendor, 
• If you add an additional developer to task ABC,
• If you use quick-drying cement,

If you are looking for a great way to engage your key stakeholders and identify project risks, perform a SWOT Analysis. Project managers or other facilitators can use this powerful tool to identify strengths and weaknesses. Furthermore, strengths may give rise to opportunities and weaknesses may lead to threats. Let's look at how to perform a SWOT Analysis.

"Why am I still having problems with small projects?

This plaintive question is one I'm asked from time to time. I'd like to give a few brief reasons why project managers struggle with small projects.

Pitfalls of Small Projects

1. You think these projects are simple. In general, smaller projects have less risk. However, small projects may have a complex set of variables.

Be sure to analyze the complexity of the project. For example, you may engage your team to draw a context diagram and/or data flow diagrams early in the project. This exercise allows the team to understand the context of the project.

2. You don't have a project charter. Project managers are assigned projects at the last minute with a tight deadline. Rather than discussing the project with stakeholders and documenting the business case, problems, goals, and deliverables, the project manager hits the ground running. Later, stakeholders demand costly changes.

Make it a priority to engage your key stakeholders and develop a project charter. This exercise will provide a good foundation and reduce the changes later in the project. For smaller projects, the project manager should be able to create a charter in short order.

3. You are applying the wrong level of rigor. I see two extremes: First, project managers do not follow any methodology. 

Second, project managers undertake numerous tasks usually performed for large, complex projects.

Keep it simple. Determine the steps you plan to take and develop the planning documents that will provide real value. Execute and stay with the plan.

5. Your team has been poorly staffed. These projects often get the leftover resources. Any warm body will do or will it?

For all projects, define the required knowledge and skills. Seek to staff the project team accordingly.

6. You are not performing project risk management. Yes, smaller projects typically have less risk. This does not mean there are zero risks.

Risk management should not take much time, but be sure to integrate risk management in your project activities. Simple qualitative analysis should be sufficient for evaluating the risks.

7. You are not performing change management. A stakeholder asks for a change in the scope. It's not a big change. You say okay.

Users request additional changes over time. The cumulative effect becomes significant.

Decide up front how you will manage, track, and report changes. When is a change order required? Who has to approve it? 

What is the role of the project manager? The Project Management Body of Knowledge (PMBOK) says, "The project manager is the person assigned by the performing organization to lead the team that is responsible for achieving the project objectives (my italics)." Defining clear objectives and goals is the foundation of the project. Let's look at how to write SMART goals.