Before we address the effect of change on decisions, I want to stay a bit longer with the discussion of risk and uncertainty. We addressed this earlier when we evaluated risk on proposed projects and took into account the impact of risk on the benefits model. If we did not reject the project outright due to unacceptable risk, we identified potential risk events and potential risk mitigation options. Some of these options will have been chosen prior to project selection. Oth ers may have been backup mitigation options, to be employed sometime during the project execution, based on risk events. Therefore, managing risk in the active portfolio requires:
• Identifying the points in time where decisions regarding mitigation options should be made. These should be noted in the project schedule.
• Allowing some lead time just prior to the decision point for the review and decision process.
• Incorporating the effect of the risk/mitigation decision issue into the project valuation data to allow reconsideration of the selection decision.
• Repeatedly asking, "Are we satisfied with the direction that the project is taking?"
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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.