The role of the risk manager in a project

There are many risks associated with a project. These are unavoidable, as it is difficult to achieve sustainable success without taking risks. For example, if a project involves the development of a new keyboard, but is based on a proven and widely used technology, there is a risk that the product will be lost in the crowd. On the other hand, if the project team chooses an innovative technology, there is a risk that it will be untested and may run into problems. At the same time, however, the product has the potential to stand out from the competition. Identifying and managing these risks is where the risk manager plays a central role in the project.

The risk manager is responsible for risk management within the project and oversees the handling of potential risks. This includes identifying, analysing, evaluating, monitoring and controlling risks. Legal and regulatory requirements, covered in another article, must also be considered.
 
The aim of the risk management process is to minimise the impact of potential risks on the project's objectives. These impacts are regularly summarised in reports for management. These reports include not only a risk assessment, but also concepts and concrete recommendations for action regarding opportunities and risks.
 
A key aspect of risk management is the continuous development and optimisation of processes. New tools and methods can be introduced to make risk management more efficient and cost-effective. Planning and evaluation play a key role, supported by various techniques such as stress testing or scenario analysis:
 

• Stress tests are widely used in the financial sector. Their purpose is to simulate the impact of certain developments and derive risk management strategies.
• Scenario analyses help to assess possible developments and their consequences. Three scenarios are distinguished:
  • Best-case scenario: An optimistic forecast with no significant risks.
  • Middle-case scenario: A realistic assessment with potential risks that could affect the project.
  • Worst-case scenario: The most unfavourable possible development of a project, requiring intensive preparation for risks. 

In particular, the worst-case scenario helps to prepare for potential challenges and develop appropriate countermeasures.
 
In addition to risk monitoring, collaboration within the project team plays a crucial role. Although the risk manager is responsible for risk management, the whole team should be informed about potential risks. Especially in the analysis and identification phase, team members can provide valuable insights.
 
An effective approach is brainstorming, where the team works together to identify early signs of risk and develop possible solutions. This sharing improves risk management, making it more effective and practical.

Both professional and personal skills are required to successfully perform the many roles and responsibilities of a risk manager. Some of these skills are acquired through experience, while others - particularly the essential soft skills - are more difficult to develop:
 

• Decision-making and assertiveness: These are crucial for prioritising risks. In projects, multiple risks often arise simultaneously, making it impossible to address them all at once. Since different people may weigh risks differently, it is important that the risk manager makes the final decision on prioritisation.
• Resilience: When risks arise, the risk manager must remain calm to take appropriate action and avoid panic.
• Communication skills: Clear and focused communication - especially with stakeholders - is critical to project success, especially in high-risk situations. 

In addition to these soft skills, solid technical knowledge, known as hard skills, is also essential:
 

• Methodological competence: The risk manager should have a strong grasp of statistics and be able to work with calculation and simulation software.
• Industry knowledge: A deep understanding of the relevant industry is essential for early risk identification. While brainstorming sessions can provide insights, solid industry knowledge greatly facilitates risk analysis.
• Interdisciplinary thinking: As risks often affect multiple aspects of a project, the risk manager must consider both internal and external factors and recognize interrelationships between different disciplines. 

Due to their high level of responsibility, risk managers typically have many years of professional experience in relevant fields. This experience enables them to use calculation and simulation tools effectively and to make well-informed decisions. A strong educational background in statistics, business administration or engineering is advantageous to understand the underlying mathematical and analytical methods.
 
There are now specialised courses and certifications in risk management. Certifications provide a standardised and objective assessment of a risk manager's skills and help to establish uniform processes and standards in the field.

The risk manager plays a key role in project management, not only in identifying and assessing risks, but also in helping the team to make informed decisions and take appropriate action. They do not minimise risks directly, but ensure that they are managed effectively. By combining knowledge, experience and personal skills, they make a significant contribution to the success of the project. This structured risk management approach enables the team to successfully complete the development of the new keyboard by effectively overcoming challenges.