Using project soft skills to balance project risk management response. 

Even experienced project managers may face challenges in identifying, assessing, and mitigating project risks effectively. Particularly in high-risk or uncertain environments, which can impact project success and stakeholder satisfaction. 

It can’t be overstated how powerful, high degrees of trust, goodwill and emotional connection are, with project team members and stakeholders, in seeking to identify, assess and mitigate risk. Coupling these with active listening skills and awareness of body language, offers a step-change in a project manager’s ability to manage risk successfully. 

 Leveraging group and individual knowledge 

There is little to be done about truly unknown unknowns. However, whilst there may be risks that the project manager and individual stakeholders may be unaware of – there may be visibility and awareness of these within wider group.  Actively engaging and using soft skills, such as active listening and body language reading, with the stakeholders can help to flush these out, and bring them to the attention of the wider group, so they can be addressed.  

The value of strong emotional bank accounts for collaboration 

As project managers works through risks and issues with stakeholders, towards agreement on balanced responses and approaches, an enormous amount of time can be saved,and more satisfying and workable solutions can also be agreed, when the project manager has built strong emotional bank accounts with the players involved. Allowing the project manager to support stakeholders in exploring the overlap between their interests, rather than focussing on the marginal differences. 

Different stake holders will have different appetites for risk, in different areas of the project. This is as a consequence of their differing interests and understanding of the potential impacts and costs.  

Understanding and articulating stakeholder positions 

What may seem obvious and self-evident to one stakeholder may not to another. So a project manager’s understanding of the various positions, and ability to articulate them in a way that makes most sense to others, can help achieve agreement on whether to accept or mitigate risk and if so, to what degree and at what cost.   

Failure to manage risk properly has consequences that ripple out beyond the project and has serious negative impacts stakeholders. Mix in politics, and a desire to protect and defend their interests, and there is even more at stake. 

Striking a project risk management balance 

Project managers must navigate through these situations. And do so in a way that seeks agreement on what constitutes an acceptable and proportionate balance of risk management with project progress, amongst stakeholders.  

Given the stakes, sometimes individuals may not trust each at times during this process. However, if they both trust the project manager, it allows them to explore opportunities for both compromise and mutual success.

 

Useful soft skills for project risk management 

Project risk management is a complex aspect of a project managers work. However, there are several project management soft skills which greatly assist project managers in effectively handling risks throughout a project. Here are some of the most useful soft skills for project risk management: 

Communication:

Clear and effective communication is essential for identifying, assessing, and addressing project risks. Project managers need to communicate project risk information to stakeholders, team members, and decision-makers in a timely and understandable manner. This ensures everyone is aware of potential threats and mitigation strategies. 

Stakeholder Management:

Engaging with stakeholders and involving them in the project risk management process can help project managers gain valuable insights and support for project risk mitigation efforts. Building strong relationships with stakeholders fosters collaboration and enhances the effectiveness of project risk management activities. 

Emotional Intelligence:

Understanding and managing emotions, both their own and those of others, is essential for effective project risk management. Project managers also need to remain calm and composed under pressure. Particularly since dealing with uncertainty, and navigating the conflicts or disagreements that may arise during project risk discussions, can be challenging. 

Problem-solving:

Project managers should possess strong problem-solving skills to analyse project risks, identify root causes, and develop appropriate project risk management responses. They need to think critically and creatively to devise innovative solutions to mitigate or manage project risks effectively. 

Critical Thinking:

The ability to think critically and analytically is crucial for evaluating the likelihood and impact of project risks on project objectives. So project managers must assess project risk factors objectively, considering various scenarios and their potential consequences to make informed decisions. 

Decision-making:

Project managers often need to make decisions quickly and decisively in response to emerging project risks. Consequently, having strong decision-making skills enables them to prioritize project risks and allocate resources efficiently. It also allows implementation of appropriate project risk management responses to minimize impact on the project. 

Adaptability:

Projects are inherently dynamic, and project risks can evolve over time. So project managers must be adaptable and flexible. Being ready to adjust project risk management strategies as new information becomes available or project circumstances change. 

Leadership:

Project managers need strong leadership skills to inspire confidence and motivate team members. Leadership skills are also needed in fostering a culture of project risk awareness and accountability. Leading by example and demonstrating a proactive approach to project risk management is important. As is encouraging team members to actively participate in project risk identification and mitigation efforts. 

Negotiation Skills:

Negotiation skills are valuable for resolving differences of opinion or conflicting priorities related to project risk management. Negotiating with stakeholders to secure resources for project risk mitigation activities or to reach consensus on risk response strategies, is an essential soft skill. 

Resilience:

Project managers must be resilient in the face of adversity and setbacks. Furthermore, they must also deal with unexpected project risks and setbacks, bounce back from failures, and persevere in their efforts to keep the project on track despite challenges. 

The more complex a project becomes, the greater the risks involved and the more is at stake for those involved. In these situations, the people side of the project becomes more complex too. Consequently the project manager must rely more and more on project soft skills to successfully navigate the various interests involved.  

The good news is that the project manager can leverage those same project soft skills to access a much deeper level of engagement, cooperation and collaboration than technical skills alone, going a considerable way to making project risk management more effective.