The Real Role of a PM in Risk Management: Building Trust Beyond the Basics

By Liam Ho, Project Manager at Groove Technology

When people think of Project Managers (PMs) in software development, there are often a few misconceptions about our role, particularly when it comes to managing risks. I’ve heard it all before:

• “PMs just handle paperwork and schedules.”
• “They don’t really need to know about the technical stuff.”
• “PMs control everything; they can avoid all risks.”

But here’s the reality: managing a software project is about far more than just keeping the schedule and handling paperwork. And as for controlling everything? That’s a myth—especially when it comes to risks. Risks are an inherent part of any software project. The key isn’t eliminating them, but managing them effectively and building trust with the client through transparent, proactive risk management.

In my experience, managing risks well is less about avoiding problems and more about making smart, informed decisions. And that’s where the real value of a PM comes in—keeping everything running smoothly, even when things go off course, and ensuring the client feels confident every step of the way.

01. Misconceptions About Risk Management in Software Projects

Before I dive into how I manage risks, let’s clear up some common misconceptions about what it means for a PM to handle risks in a software project.

1.1 “PMs Can Avoid All Risks”

This is probably the biggest myth. No PM, no matter how experienced, can foresee and prevent every issue. Software development is inherently complex, and risks will always arise, whether it’s a last-minute change in client requirements or a bug that slips through the cracks.

In my role, the focus isn’t on avoiding risks but on spotting potential problems early and creating backup plans to minimize the impact.

1.2 “PMs Don’t Need to Understand the Technical Side of Risks”

While it’s true that PMs don’t need to code, we do need a solid understanding of the technical aspects of the project. I can’t manage what I don’t understand, so when I see potential risks in third-party APIs, database migrations, or cloud integrations, I work closely with my development leads to make sure I fully grasp the scope of those risks. It’s not about being a technical expert, but about communicating effectively with the development team to stay ahead of potential pitfalls.

1.3 “Managing Risks is All About Crisis Management”

Many people think risk management only kicks in when something’s already going wrong. But for me, risk management starts from day one. It’s about preventing the crisis in the first place by planning, identifying bottlenecks, and anticipating potential roadblocks.

02. Building Client Trust Through Risk Management: My Personal Approach

For me, risk management is an ongoing process that builds client trust. Here’s how I approach it:

2.1 It Starts with Transparency

I’ve learned over time that clients appreciate honesty. They don’t expect perfection—they expect visibility and clear communication. From the beginning of any project, I make it a point to explain the potential risks we’re anticipating and how we plan to manage them. For instance, in one project where we were implementing a new third-party integration, I highlighted early on the potential delays we might face due to API changes on the provider’s end.

Clients know that software development isn’t always smooth sailing, so keeping them in the loop and explaining both the challenges and solutions builds their confidence.

Tip: Don’t wait until a risk becomes a problem to inform the client. Proactive communication is key to maintaining trust and avoiding last-minute surprises.

2.2 It’s About Prioritizing the Right Risks

Not all risks are created equal. Some might have a high probability but low impact, while others could seriously derail the project if they’re not handled properly. For example, I’ve worked on projects where a feature was delayed by a week, but it didn’t affect the overall project. On the flip side, I’ve had experiences where a delay in data migration could have caused major issues if we didn’t have a solid risk management plan in place.

I prioritize high-impact risks first and create mitigation plans that focus on minimizing their potential damage. My team and I regularly assess these risks and adjust our plans based on new information. The key is staying agile and adaptable, rather than rigidly sticking to a plan.

2.3 Backup Plans Aren’t Just for Show

Backup plans are a critical part of how I manage projects. Whether it’s staff allocation (in case someone goes on leave) or having a secondary approach for implementing a tricky feature, I always make sure there’s a Plan B (and sometimes even a Plan C).

That level of preparedness builds trust—not just within the team but with the client too.

03. The Technical Side of Risk Management: A PM’s Viewpoint

Managing risks in a technical project doesn’t mean I’m the one writing code or fixing bugs, but it does mean I need to understand the technical landscape enough to make informed decisions. Here’s how I approach risk management from a more technical perspective:

3.1 Involving the Right People at the Right Time

When technical risks arise, the first step is involving the right stakeholders. For example, if we anticipate performance issues due to high traffic, I’ll bring in the DevOps team early to start load testing and performance optimization. For potential security risks, I’ll ensure that the QA team is conducting security audits throughout the project, not just at the end.

By bringing in the technical experts when necessary, we’re able to address risks with the appropriate solutions before they become major problems.

3.2 Using Metrics to Track Risks

Metrics play a huge role in how I monitor risks. For example, in past projects, I’ve used error tracking and monitoring tools like Sentry to flag potential issues before they escalate. If error logs or server response times start to spike, I know we need to investigate before it turns into a more significant issue.

On a broader level, we track project metrics—burn rate, task completion, and overall velocity—to ensure we’re hitting our targets and addressing bottlenecks early. If I notice a dip in velocity due to a technical issue, it signals that we may need to reallocate resources or revisit our timeline.

3.3 Keeping Tabs on Technical Debt

One overlooked aspect of risk management is technical debt. In several projects, I’ve seen how accumulated shortcuts taken during development, such as poor documentation or skipped refactoring, lead to increased maintenance costs down the road. By identifying these risks early, I can work with the development team to schedule time for technical debt repayment or put in place a long-term strategy to minimize its impact.

Technical debt may not seem like an immediate risk, but left unchecked, it can snowball into larger issues that jeopardize future features, stability, or even the overall scalability of the product.

04. Challenges in Risk Management and My Lessons Learned

4.1 Time Pressure vs. Risk Management

One of the toughest balancing acts I face is managing risks while keeping the project moving forward. Time is often not on our side, and dedicating too much time to risk management can cause delays. At the same time, neglecting risk management leads to last-minute issues that are even harder to resolve.

My Approach:

I’ve learned to integrate risk management into the daily workflow. Instead of having separate “risk review” meetings, I’ll include risk discussions as part of our regular sprint planning sessions. This keeps risk management efficient and ensures it doesn’t slow down the team’s productivity.

4.2 Managing Client Expectations Around Risks

Clients sometimes expect that all risks can be avoided or fully mitigated. The reality is, despite our best efforts, some risks materialize, and it’s important to manage client expectations accordingly.

My Approach:

I set the tone early with clients by explaining that risks are an inherent part of software development. The goal is not to eliminate risks but to control their impact. When a risk does become an issue, I communicate immediately, explain the impact, and outline how we’ll address it. This openness keeps the client on our side, even when things go wrong.

4.3 Balancing Innovation with Risk Aversion

I’ve seen teams, myself included, avoid adopting new technologies or processes out of fear of introducing more risk. However, being too risk-averse can stifle innovation, which in turn limits the growth potential of the project.

My Approach:

I balance calculated risk-taking with client trust. If there’s a newer, more efficient technology we could adopt, I suggest a pilot run. This allows us to try out the new solution on a smaller scale before rolling it out fully, ensuring the risks are manageable while still pushing for improvement.

05. Final Thoughts: How Risk Management Strengthens Relationships

For me, risk management isn’t about being perfect or predicting the future. It’s about having a proactive mindset, creating backup plans, and keeping everyone informed—from the development team to the client. Clients trust us when they see we’re in control, even when things get challenging.

By managing risks well, I’ve found that my relationships with clients become stronger. They appreciate knowing that, while we can’t prevent every issue, we’re always prepared to handle whatever comes our way. And that’s where the real value of a PM lies—keeping the project on track while building trust along the way.

Liam Ho was a Project Manager at Groove Technology, specializing in proactive risk management and transparent communication to ensure smooth project delivery and strong client relationships.