Dealing Honestly with Risk

Uncertainty is an ever-present element of the project environment. Risk is not necessarily bad. In fact, many of the best opportunities have considerable risk. The key is to make sure that the risk is fully disclosed and considered. This can be ensured only if there is a proactive culture to address risk, backed up by mandated and audited practices. There is considerable danger that enthusiastic or biased project sponsors will hide potential risks or discount the impact of potential risks.

Here's a scene played out regularly in the corporate world. The project case is presented. There is a most likely scenario, plus a potential upside and a potential downside. The sponsor then says to ignore the downside because the downside won't happen. No one can will the downside to go away. You not only have to be honest enough to recognize the risk. You also have to acknowledge the necessity to deal with risk.

Remember the saying, "If you can't stand the heat, then stay out of the kitchen"? For projects, it can be reworded as, "If you can't stand uncertainty, then stay out of the projects business." But don't let the uncertainty be an enemy. Recognize it and deal with it.

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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