Risk Control is a fundamental component of the Risk Practice within PRINCE2 7, focusing on the systematic management of identified risks throughout a project's lifecycle. It encompasses the activities and procedures used to monitor, evaluate, and respond to risks that may impact project objectives.…Risk Control is a fundamental component of the Risk Practice within PRINCE2 7, focusing on the systematic management of identified risks throughout a project's lifecycle. It encompasses the activities and procedures used to monitor, evaluate, and respond to risks that may impact project objectives.
The primary purpose of Risk Control is to ensure that risk responses are implemented effectively and that the overall risk exposure remains within acceptable tolerances. This involves continuous monitoring of identified risks, tracking the effectiveness of risk responses, and identifying any new risks that may emerge as the project progresses.
Key elements of Risk Control include:
1. Monitoring Risk Status: Regular review of existing risks to determine whether they have changed in probability or impact. This helps project teams stay informed about the current risk landscape.
2. Tracking Risk Responses: Ensuring that planned risk responses are being executed as intended and evaluating whether they are achieving the desired results. If responses prove ineffective, alternative actions must be considered.
3. Communicating Risk Information: Keeping stakeholders informed about risk status through regular reporting. This transparency supports informed decision-making at all levels of project governance.
4. Updating Risk Documentation: Maintaining accurate and current risk registers and related documentation to reflect changes in risk status, new risks, and closed risks.
5. Escalation Procedures: When risks exceed defined tolerances or when risk responses require resources beyond the project manager's authority, appropriate escalation to higher management levels becomes necessary.
Effective Risk Control requires integration with other project management activities and should be embedded within regular project reviews and checkpoint meetings. It supports proactive management rather than reactive crisis handling, enabling projects to navigate uncertainty while maintaining focus on delivering expected benefits and outcomes.
Risk Control in PRINCE2 Foundation v7
Why Risk Control is Important
Risk Control is a fundamental aspect of the Risk practice in PRINCE2 that ensures identified risks are actively managed throughout the project lifecycle. Projects operate in uncertain environments, and risks can derail timelines, budgets, and outcomes if left unmanaged. Effective risk control enables project teams to respond proactively to threats and capitalize on opportunities, ultimately increasing the likelihood of project success.
What is Risk Control?
Risk Control refers to the ongoing process of implementing risk responses, monitoring the effectiveness of those responses, and taking corrective action when necessary. It encompasses the activities that ensure risks remain within acceptable tolerance levels and that the risk management approach continues to be appropriate for the project context.
Risk Control involves: • Implementing planned risk responses • Monitoring the status of identified risks • Tracking risk indicators and early warning signs • Reviewing the effectiveness of risk responses • Identifying new risks as they emerge • Communicating risk status to stakeholders • Escalating risks that exceed tolerance levels
How Risk Control Works
Risk Control operates as a continuous cycle throughout the project. The process includes:
1. Executing Risk Responses: Implementing the planned actions for each risk, whether that involves avoidance, reduction, transfer, acceptance, exploitation, or enhancement strategies.
2. Monitoring Risks: Regularly reviewing the Risk Register to assess whether risks have changed in probability or impact, and whether new risks have emerged.
3. Reviewing Effectiveness: Evaluating whether implemented responses are achieving their intended outcomes and adjusting approaches when they are not working as expected.
4. Reporting: Providing regular updates on risk status through Highlight Reports and Exception Reports when risks exceed tolerances.
5. Escalation: When risks threaten to exceed stage or project tolerances, escalating to the appropriate level of management for decisions.
The Project Manager has primary responsibility for day-to-day risk control activities, while the Project Board maintains oversight and handles escalated risks.
Exam Tips: Answering Questions on Risk Control
Focus on Roles and Responsibilities: Remember that the Project Manager manages risks at the project level, Team Managers handle risks within their work packages, and the Project Board addresses strategic risks and escalations.
Understand the Risk Register: Know that the Risk Register is the primary tool for recording and tracking risks, and it must be kept current throughout the project.
Link to Tolerances: Risk control is closely tied to the concept of management by exception. Risks that threaten tolerances must be escalated appropriately.
Recognize Continuous Activity: Risk control is not a one-time event but an ongoing process that occurs throughout all stages of the project.
Connect to Reporting: Understand how risk information flows through project reports, particularly Highlight Reports and End Stage Reports.
Remember the Risk Owner: Each risk should have an assigned owner who is responsible for monitoring and managing that specific risk.
When answering exam questions, look for scenarios that test your understanding of who should take action, what documentation should be updated, and when escalation is appropriate.