Project-Based Work and Risk

 

I have never wanted to bungee jump.  For some reason putting my life in the hands of the guy flirting with the cute girl behind me in line has just never seemed like a good idea.  (She would have been a distraction to me, I can't expect anything more from the teenager deciding how much spring would be acceptable for my size and weight.)

I don't know if I would say I am afraid.  Well, maybe.

With the exception of thrill-seeking adrenaline junkies, most people tend to be a little "risk averse."  To a greater or lesser degree, fear avoidance is how many people deal with risk—despite the fact that it isn't a sound strategy.  Particularly in a discussion about project risk.

Successful project and portfolio management methodologies address risk early—during the evaluation process.  Facing risk early gives business leaders and project managers options.  They can:

1. Quantify the risk (some risks are worth taking): I commute to the office every day because the need to earn a living outweighs the risk of a car accident.
2. Determine a plan to mitigate the risk: I wear a seat belt so if an accident does occur, I increase the odds that I won't suffer permanent injury.
3. Avoid the project to avoid the risk (Some risks aren't worth taking): I don't commute to work standing on the roof of my car "surfing" down the highway.

Do your work management processes help you face and deal with risk?  If so, is it early enough in the process to make informed decisions about whether or not the risk is worth taking?  Or do you leave it up to change?  Or worse—ignore and avoid?