Visual Ishikawa Risk Technique (VIRT)—An Approach to Risk Management

Risk Management in Practice

The 4th edition of A Guide to the Project Management Body of Knowledge (PMBOK® Guide) (Project Management Institute [PMI], 2008) describes six risk processes: Plan Risk Management, Identify Risks, Qualitative Risk Analysis, Quantitative Risk Analysis, Risk Response Planning, and Monitor and Control Risks. Many organizational risk methodologies use identical or similar steps in sequence. A major problem is that project managers, faced with all other responsibilities, neglect performing the “full” risk management activities. While this is generally acceptable (some risk management is still better than none at all), the lack of maintenance throughout the project opens the door to complacency and for previously identified risks to cause negative impacts to the project.

Risk management is an essential aspect of managing projects, but in practice it just isn’t performed on a regular basis. The perception is that risk management is arduous and administrative. “The pressure from both clients and top vendor management to meet tight schedule and budget targets may also result in project managers regarding time-consuming risk response planning activities to be a costly luxury” (Taylor, 2006). While many project managers understand the importance of risk management, the majority prefer making risk-based …