Risk is inevitable when executing a project. Whether it’s a financial loss, accident, or project failure, there are any number of ways a project can go wrong. It’s your job to identify possible risks and have a plan in place for minimizing, as well as dealing with them when they are encountered. Sound tough? This may be the least favorite part of any PM’s job, but we have a wealth of content to help you navigate these issues and succeed in your project. Read articles, tips and ideas from fellow PMs and share your own experience in the comments.
Ignoring the environment is perilous to the sustainment of any project or organization! You need to keep the effect on the environment front and center! Issues such as commuting, parking, building, noise, light, energy usage, and waste management all are part of the environment effects to be considered. If any one of these is not managed within acceptable limits, the environmental sustainability of the project and even of the organization will be at risk.
Sustainability of an organization increasingly is dependent on managing social risks - that is in managing the organization’s relationship with its immediate and extended community. Some factors to consider include attitude toward existing companies, employee relations, potential financial impact to the larger community, and possible supporting infrastructure required. It is important to recognize the external social factors at play – and to recognize what your organization, with limited control over these factors, can do to manage the risks that these factors pose.
Sustainability, which is more often associated with environmental or other larger societal concerns, is often not associated with financial considerations, which is a complete show-stopper risk. Public pressure tends to be in external-facing areas such as environmental, community planning, regional economic impact, and impact to local services. In fact, sometimes these considerations even come at odds with internal financial viability and sustainability, which need to be in place to accomplish any of these other external-facing objectives.
Project risks can affect operational sustainability in a business, yet sometimes these risks are not managed appropriately, if at all. Identifying these operational sustainability risks can take some work, but it can be very worthwhile. Supplier disruption, relationship conflicts, operational strategy misalignment, and talent management miscues are just a few of the missteps that can hurt operational sustainability. This is the first part of a series of four articles on sustainability.
Even on agile project, managing risks needs to be done proactively, but the process is different and requires a unique approach that differs from traditional waterfall projects.
You must manage risks throughout a project. To handle this ominous and all-important task, you need an effective organizing tool to help you track all project risks and related information – a risk register.
Not all risks are created equal. Indeed, some risks have a minor effect, and while others are complete deal breakers! However, one risk trumps them all…
The scope of project management touches virtually every aspect of the project. Don’t take it lightly! It is important to be through in examining all areas of the project for potentially hidden risks to avoid unwanted surprises!
Small biases exist within every person, project, or organization and can bring severe losses to a project. For example, the delay in the launch of the Airbus A380 aircraft cost Airbus a two year delay and 6 billion dollars! Learn how to avoid systematic biases in your decision making.
A Risk Management Plan should never be an isolated after-thought to the rest of your plan. It is an integral part of the project as a whole and needs to be developed to go along with every other piece. Here is the process you should follow for identifying and managing risks.